SGX:OV8

Stock Analysis Report

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Market Cap

S$2.3b

Last Updated

2021/06/20 16:31 UTC

Data Sources

Company Financials +

Executive Summary

Sheng Siong Group Ltd, an investment holding company, operates supermarket retail stores in Singapore. More Details


Snowflake Analysis

Solid track record with excellent balance sheet.

Share Price & News

How has Sheng Siong Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OV8 is not significantly more volatile than the rest of SG stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: OV8's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.6%

OV8

-1.1%

SG Consumer Retailing

-0.7%

SG Market


1 Year Return

-1.3%

OV8

3.0%

SG Consumer Retailing

15.9%

SG Market

Return vs Industry: OV8 underperformed the SG Consumer Retailing industry which returned 3% over the past year.

Return vs Market: OV8 underperformed the SG Market which returned 15.9% over the past year.


Shareholder returns

OV8IndustryMarket
7 Day-0.6%-1.1%-0.7%
30 Day-3.7%-0.8%1.3%
90 Day4.0%1.9%0.8%
1 Year3.8%-1.3%7.6%3.0%20.6%15.9%
3 Year68.6%52.9%-27.9%-35.9%3.2%-9.6%
5 Year113.5%80.3%-0.1%-16.1%26.0%2.4%

Long-Term Price Volatility Vs. Market

How volatile is Sheng Siong Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sheng Siong Group undervalued compared to its fair value and its price relative to the market?

31.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OV8 (SGD1.56) is trading below our estimate of fair value (SGD2.29)

Significantly Below Fair Value: OV8 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OV8 is good value based on its PE Ratio (16.6x) compared to the SG Consumer Retailing industry average (21.5x).

PE vs Market: OV8 is poor value based on its PE Ratio (16.6x) compared to the SG market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: OV8's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: OV8 is overvalued based on its PB Ratio (5.7x) compared to the SG Consumer Retailing industry average (0.9x).


Future Growth

How is Sheng Siong Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OV8's earnings are forecast to decline over the next 3 years (-2% per year).

Earnings vs Market: OV8's earnings are forecast to decline over the next 3 years (-2% per year).

High Growth Earnings: OV8's earnings are forecast to decline over the next 3 years.

Revenue vs Market: OV8's revenue (0.9% per year) is forecast to grow slower than the SG market (7.9% per year).

High Growth Revenue: OV8's revenue (0.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OV8's Return on Equity is forecast to be high in 3 years time (25.2%)


Past Performance

How has Sheng Siong Group performed over the past 5 years?

16.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OV8 has a large one-off gain of SGD34.8M impacting its March 31 2021 financial results.

Growing Profit Margin: OV8's current net profit margins (10%) are higher than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: OV8's earnings have grown by 16.7% per year over the past 5 years.

Accelerating Growth: OV8's earnings growth over the past year (65.5%) exceeds its 5-year average (16.7% per year).

Earnings vs Industry: OV8 earnings growth over the past year (65.5%) exceeded the Consumer Retailing industry 14.5%.


Return on Equity

High ROE: OV8's Return on Equity (34.8%) is considered high.


Financial Health

How is Sheng Siong Group's financial position?


Financial Position Analysis

Short Term Liabilities: OV8's short term assets (SGD356.1M) exceed its short term liabilities (SGD246.9M).

Long Term Liabilities: OV8's short term assets (SGD356.1M) exceed its long term liabilities (SGD45.6M).


Debt to Equity History and Analysis

Debt Level: OV8's debt to equity ratio (7.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if OV8's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: OV8's debt is well covered by operating cash flow (771.6%).

Interest Coverage: OV8's interest payments on its debt are well covered by EBIT (129.6x coverage).


Balance Sheet


Dividend

What is Sheng Siong Group current dividend yield, its reliability and sustainability?

4.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OV8's dividend (4.17%) is higher than the bottom 25% of dividend payers in the SG market (1.85%).

High Dividend: OV8's dividend (4.17%) is low compared to the top 25% of dividend payers in the SG market (4.95%).


Stability and Growth of Payments

Stable Dividend: OV8 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: OV8's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69%), OV8's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OV8's dividends in 3 years are forecast to be covered by earnings (71.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.0yrs

Average management tenure


CEO

Hock Chee Lim (59 yo)

no data

Tenure

S$3,523,000

Compensation

Mr. Hock Chee Lim, BBM, serves as the Chief Executive Officer of Sheng Siong Group Ltd. Mr. Lim is instrumental in CMM Marketing and SS Supermarket Group's growth and has been leading the expansion of its ...


CEO Compensation Analysis

Compensation vs Market: Hock Chee's total compensation ($USD2.62M) is above average for companies of similar size in the SG market ($USD1.26M).

Compensation vs Earnings: Hock Chee's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: OV8's management team is seasoned and experienced (9 years average tenure).


Board Members

Experienced Board: OV8's board of directors are seasoned and experienced ( 10 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sheng Siong Group Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sheng Siong Group Ltd
  • Ticker: OV8
  • Exchange: SGX
  • Founded: 1985
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: S$2.346b
  • Shares outstanding: 1.50b
  • Website: https://www.shengsiong.com.sg

Number of Employees


Location

  • Sheng Siong Group Ltd
  • 6 Mandai Link
  • Singapore
  • 728652
  • Singapore

Listings


Biography

Sheng Siong Group Ltd, an investment holding company, operates supermarket retail stores in Singapore. The company’s stores offer an assortment of live, fresh, and chilled produce, such as seafood, meat, a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/20 16:31
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.