SGX:OV8

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Excellent balance sheet with proven track record.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.6%

OV8

0.6%

SG Consumer Retailing

1.7%

SG Market


1 Year Return

23.1%

OV8

-36.5%

SG Consumer Retailing

-26.9%

SG Market

Return vs Industry: OV8 exceeded the SG Consumer Retailing industry which returned -38.3% over the past year.

Return vs Market: OV8 exceeded the SG Market which returned -29% over the past year.


Shareholder returns

OV8IndustryMarket
7 Day7.6%0.6%1.7%
30 Day2.4%-8.8%-18.4%
90 Day1.6%-21.2%-25.6%
1 Year27.1%23.1%-33.7%-36.5%-23.8%-26.9%
3 Year44.3%30.6%-33.4%-39.9%-19.3%-27.9%
5 Year93.2%62.0%-32.7%-42.5%-18.4%-32.3%

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 compared to its fair value and its price relative to the market?

32.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OV8 (SGD1.25) is trading below our estimate of fair value (SGD1.9)

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


Price To Earnings Ratio

PE vs Industry: OV8 is poor value based on its PE Ratio (24.8x) compared to the Consumer Retailing industry average (17.1x).

PE vs Market: OV8 is poor value based on its PE Ratio (24.8x) compared to the SG market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: OV8 is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: OV8 is overvalued based on its PB Ratio (6x) compared to the SG Consumer Retailing industry average (0.7x).


Next Steps

Future Growth

How is Sheng Siong Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OV8's forecast earnings growth (7.6% per year) is above the savings rate (1.8%).

Earnings vs Market: OV8's earnings (7.6% per year) are forecast to grow faster than the SG market (4.7% per year).

High Growth Earnings: OV8's earnings are forecast to grow, but not significantly.

Revenue vs Market: OV8's revenue (6.3% per year) is forecast to grow faster than the SG market (4% per year).

High Growth Revenue: OV8's revenue (6.3% 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 (24.8%)


Next Steps

Past Performance

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

8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OV8 has high quality earnings.

Growing Profit Margin: OV8's current net profit margins (7.6%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: OV8's earnings have grown by 8.5% per year over the past 5 years.

Accelerating Growth: OV8's earnings growth over the past year (7%) is below its 5-year average (8.5% per year).

Earnings vs Industry: OV8 earnings growth over the past year (7%) exceeded the Consumer Retailing industry 5.8%.


Return on Equity

High ROE: OV8's Return on Equity (24%) is considered high.


Next Steps

Financial Health

How is Sheng Siong Group's financial position?


Financial Position Analysis

Short Term Liabilities: OV8's short term assets (SGD176.6M) do not cover its short term liabilities (SGD184.1M).

Long Term Liabilities: OV8's short term assets (SGD176.6M) exceed its long term liabilities (SGD33.3M).


Debt to Equity History and Analysis

Debt Level: OV8 is debt free.

Reducing Debt: OV8 has not had any debt for past 5 years.

Debt Coverage: OV8 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: OV8 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

2.81%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: OV8's dividend (2.88%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (3.28%).

High Dividend: OV8's dividend (2.88%) is low compared to the top 25% of dividend payers in the SG market (7.15%).


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 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.5%), 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 (68% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Hock Chee Lim (57yo)

no data

Tenure

S$3,223,000

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 ($USD2.24M) is above average for companies of similar size in the SG market ($USD1.52M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Hock Eng Lim
Executive Chairman9.42yrsS$3.16m9.14% SGD171.7m
Hock Chee Lim
CEO & Executive Directorno dataS$3.22m9.2% SGD173.0m
Ling San Tan
Vice Chairman3.5yrsS$3.14mno data
Hock Leng Lim
MD & Executive Director9.42yrsS$3.17m9.14% SGD171.7m
Ruiwen Lin
Senior Manager of International Business Development & Executive Director4yrsS$347.00kno data
Soong Kit Wong
Finance Directorno datano datano data
Chee Kit Woo
Acting Chief Information Officer2.92yrsno datano data
Ah Yi Law
Head of Business Development & Promotionsno datano datano data
Lim Kent
Senior Manager of Human Resourcesno datano datano data
Lay Chin Lee
Director and Head of Purchasing & Promotionsno datano datano data

6.3yrs

Average Tenure

61.5yo

Average Age

Experienced Management: OV8's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hock Eng Lim
Executive Chairman9.42yrsS$3.16m9.14% SGD171.7m
Hock Chee Lim
CEO & Executive Directorno dataS$3.22m9.2% SGD173.0m
Ling San Tan
Vice Chairman3.5yrsS$3.14mno data
Hock Leng Lim
MD & Executive Director9.42yrsS$3.17m9.14% SGD171.7m
Ruiwen Lin
Senior Manager of International Business Development & Executive Director4yrsS$347.00kno data
Teck Leng Lee
Non-Executive Director8.83yrsS$60.00k0.0033% SGD62.6k
Voon Hoo Jong
Independent Director8.83yrsS$60.00kno data
Yeow Tin Goh
Lead Independent Directorno dataS$60.00kno data
Fook Wah Lee
Independent Director8.83yrsS$60.00kno data
Poh Hong Tan
Independent Director2.25yrsS$60.00kno data

8.8yrs

Average Tenure

54yo

Average Age

Experienced Board: OV8's board of directors are considered experienced (8.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: OV8 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$1.879b
  • 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; and packaged, processed, frozen, and/or preserved food products, as well as general merchandise, including toiletries and essential household products. It is also involved in general trading, and wholesale import and export businesses. In addition, the company operates allforyou.sg, an online shopping platform for groceries. It operates 54 supermarket/grocery retail stores in Singapore; and 1 supermarket/grocery retail store in Kunming, China under the Sheng Siong brand name. Sheng Siong Group Ltd. was founded in 1985 and is headquartered in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 13:11
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.