SGX:OV8

Stock Analysis Report

Executive Summary

Sheng Siong Group Ltd, an investment holding company, operates supermarkets in Singapore.

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.

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


Market Performance


7 Day Return

-1.7%

SGX:OV8

-2.6%

SG Consumer Retailing

0.07%

SG Market


1 Year Return

0%

SGX:OV8

-18.2%

SG Consumer Retailing

-3.5%

SG Market

OV8 outperformed the Consumer Retailing industry which returned -18.2% over the past year.

OV8 outperformed the Market in Singapore which returned -3.5% over the past year.


Share holder returns

OV8IndustryMarket
7 Day-1.7%-2.6%0.07%
30 Day5.5%-5.3%-6.7%
90 Day7.4%-6.0%-1.5%
1 Year3.3%0%-15.5%-18.2%0.5%-3.5%
3 Year22.6%11.0%3.7%-5.1%15.2%2.9%
5 Year97.6%65.7%-17.6%-29.2%7.4%-10.3%

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 based on future cash flows and its price relative to the stock market?

19%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Sheng Siong Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Sheng Siong Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Sheng Siong Group is overvalued based on earnings compared to the Asia Consumer Retailing industry average.

Sheng Siong Group is overvalued based on earnings compared to the Singapore market.


Price Based on Expected Growth

Sheng Siong Group is poor value based on expected growth next year.


Price Based on Value of Assets

Sheng Siong Group is overvalued based on assets compared to the SG Consumer Retailing industry average.


Next Steps

Future Growth

How is Sheng Siong Group expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sheng Siong Group's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).

Sheng Siong Group's earnings are expected to grow by 6.8% yearly, however this is not considered high growth (20% yearly).

Sheng Siong Group's revenue growth is positive but not above the Singapore market average.

Sheng Siong Group's earnings growth is expected to exceed the Singapore market average.

Sheng Siong Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Sheng Siong Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

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

9.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sheng Siong Group's year on year earnings growth rate has been positive over the past 5 years.

Sheng Siong Group's 1-year earnings growth is less than its 5-year average (1.7% vs 9.9%)

Sheng Siong Group's earnings growth has not exceeded the Asia Consumer Retailing industry average in the past year (1.7% vs 12.5%).


Return on Equity

Sheng Siong Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Sheng Siong Group used its assets more efficiently than the Asia Consumer Retailing industry average last year based on Return on Assets.


Return on Capital Employed

Sheng Siong Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Sheng Siong Group's financial position?


Financial Position Analysis

Sheng Siong Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Sheng Siong Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Sheng Siong Group has no debt.

Sheng Siong Group has not taken on any debt in the past 5 years.

Sheng Siong Group has no debt, it does not need to be covered by operating cash flow.

Sheng Siong Group has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Sheng Siong Group has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

3.32%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Sheng Siong Group's pays a higher dividend yield than the bottom 25% of dividend payers in Singapore (2.74%).

Sheng Siong Group's dividend is below the markets top 25% of dividend payers in Singapore (5.69%).

Sheng Siong Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Sheng Siong Group only paid a dividend in the past 8 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.4x coverage).


Next Steps

Management

What is the CEO of Sheng Siong Group's salary, the management and board of directors tenure and is there insider trading?

5.6yrs

Average management tenure


CEO

Hock Chee Lim (57yo)

0.0yrs

Tenure

S$9,629,000

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

Hock Chee's remuneration is higher than average for companies of similar size in Singapore.

Hock Chee's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.6yrs

Average Tenure

61.5yo

Average Age

The average tenure for the Sheng Siong Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

8.2yrs

Average Tenure

54yo

Average Age

The tenure for the Sheng Siong Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyS$2,108,46721 May 19
Mondrian Investment Partners Limited
EntityCompany
Shares1,991,000
Max PriceS$1.06

Ownership Breakdown


Management Team

  • Soong Kit Wong (66yo)

    Finance Director

    • Tenure: 0.0yrs
  • Hock Chee Lim (57yo)

    CEO & Executive Director

    • Tenure: 0.0yrs
    • Compensation: S$9.63m
  • Hock Leng Lim (54yo)

    MD & Executive Director

    • Tenure: 8.8yrs
    • Compensation: S$6.31m
  • Hock Eng Lim (59yo)

    Executive Chairman

    • Tenure: 8.8yrs
    • Compensation: S$9.44m
  • Ling San Tan (80yo)

    Vice Chairman

    • Tenure: 2.8yrs
    • Compensation: S$9.37m
  • Ah Yi Law (73yo)

    Head of Business Development & Promotions

    • Tenure: 0.0yrs
  • Lay Chin Lee (64yo)

    Director and Head of Purchasing & Promotions

    • Tenure: 0.0yrs
  • Ruiwen Lin (35yo)

    Senior Manager of International Business Development & Executive Director

    • Tenure: 3.3yrs
    • Compensation: S$674.00k
  • Chee Kit Woo

    Acting Chief Information Officer

    • Tenure: 2.3yrs
  • Lim Kent

    Senior Manager of Human Resources

    • Tenure: 0.0yrs

Board Members

  • Robson Lee (51yo)

    Non-Executive Director

    • Tenure: 8.2yrs
    • Compensation: S$60.00k
  • Voon Hoo Jong (46yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: S$60.00k
  • Yeow Tin Goh (68yo)

    Lead Independent Director

    • Tenure: 0.0yrs
    • Compensation: S$60.00k
  • Francis Lee (53yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: S$60.00k
  • Hock Chee Lim (57yo)

    CEO & Executive Director

    • Tenure: 0.0yrs
    • Compensation: S$9.63m
  • Hock Leng Lim (54yo)

    MD & Executive Director

    • Tenure: 8.8yrs
    • Compensation: S$6.31m
  • Hock Eng Lim (59yo)

    Executive Chairman

    • Tenure: 8.8yrs
    • Compensation: S$9.44m
  • Ling San Tan (80yo)

    Vice Chairman

    • Tenure: 2.8yrs
    • Compensation: S$9.37m
  • Ruiwen Lin (35yo)

    Senior Manager of International Business Development & Executive Director

    • Tenure: 3.3yrs
    • Compensation: S$674.00k
  • Poh Hong Tan

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: S$60.00k

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$1.744b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OV8SGX (Singapore Exchange)YesOrdinary SharesSGSGDAug 2011
QSSBST (Boerse-Stuttgart)YesOrdinary SharesDEEURAug 2011

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 12:56
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.