CIMB Sheng Siong Group
Retail│Singapore
January 28, 2015
COMPANY NOTE
Sheng Siong Group
SSG SP / SHEN.SI
Market Cap
Avg Daily Turnover
Free Float
US$795.5m
US$1.28m
28.0%
S$1,068m
S$1.68m
1,384 m shares
Current
S$0.71
Target
S$0.84
Prev. Target
S$0.77
Up/Downside
18.4%
Conviction|
|
Growth reignited
Notes from the Field
Our recent grouse about Sheng Siong - its lack of new store growth over the past years - is about to change. Sheng Siong added a new store in a dormitory in December and its new Tampines site will open in January. Opportunities to open more stores are emerging as well.
————————————————————————————————————————
Kenneth NG, CFA
T (65) 6210 8610
E kenneth.ng@cimb.com
Jonathan SEOW
T (65) 6210 8671
E jonathanwp.seow@cimb.com
Company Visit
Channel Check
Expert Opinion
Customer Views
————————————————————————————————————————
Show Style "View Doc Map"
Contents
TWO STORE OPENINGS IN THE PAST TWO MONTHS ... 5
FOREIGN WORKERS’ QUARTERS = GROWTH ENGINE. 6
CHINA IS JUST A SMALL VENTURE ................................. 7
VALUATION AND RECOMMENDATION ............................ 8
Price Close
113.0
0.700
108.0
0.650
103.0
0.600
98.0
0.550
93.0
0.500
200
88.0
150
Vol m
100
50
Apr-14
Jul-14
Oct-14
Source: Bloomberg
52-week share price range
0.71
0.73
0.59
0.84
Current
Target
gestation periods.
Exciting new segment in
Integrated dormitories
As part of efforts to improve the living quarters of work permit holders,
Singapore is developing a number of purpose-built dormitories for foreign workers. Over the next two years, we can expect an additional ~100k beds in six dormitories. The first one is up in Penjuru and Sheng Siong has won the bid to run a new store in the new integrated dormitory. We think this represents new store opportunities as
A new dawn
After two years of no-store growth, Sheng Shiong‟s positioning sits well in
Sheng Shiong opened two stores in this segment. Points to douse
Dec-Jan, hiking total retail space by
January 28, 2015
COMPANY NOTE
Sheng Siong Group
SSG SP / SHEN.SI
Market Cap
Avg Daily Turnover
Free Float
US$795.5m
US$1.28m
28.0%
S$1,068m
S$1.68m
1,384 m shares
Current
S$0.71
Target
S$0.84
Prev. Target
S$0.77
Up/Downside
18.4%
Conviction|
|
Growth reignited
Notes from the Field
Our recent grouse about Sheng Siong - its lack of new store growth over the past years - is about to change. Sheng Siong added a new store in a dormitory in December and its new Tampines site will open in January. Opportunities to open more stores are emerging as well.
————————————————————————————————————————
Kenneth NG, CFA
T (65) 6210 8610
E kenneth.ng@cimb.com
Jonathan SEOW
T (65) 6210 8671
E jonathanwp.seow@cimb.com
Company Visit
Channel Check
Expert Opinion
Customer Views
————————————————————————————————————————
Show Style "View Doc Map"
Contents
TWO STORE OPENINGS IN THE PAST TWO MONTHS ... 5
FOREIGN WORKERS’ QUARTERS = GROWTH ENGINE. 6
CHINA IS JUST A SMALL VENTURE ................................. 7
VALUATION AND RECOMMENDATION ............................ 8
Price Close
113.0
0.700
108.0
0.650
103.0
0.600
98.0
0.550
93.0
0.500
200
88.0
150
Vol m
100
50
Apr-14
Jul-14
Oct-14
Source: Bloomberg
52-week share price range
0.71
0.73
0.59
0.84
Current
Target
gestation periods.
Exciting new segment in
Integrated dormitories
As part of efforts to improve the living quarters of work permit holders,
Singapore is developing a number of purpose-built dormitories for foreign workers. Over the next two years, we can expect an additional ~100k beds in six dormitories. The first one is up in Penjuru and Sheng Siong has won the bid to run a new store in the new integrated dormitory. We think this represents new store opportunities as
A new dawn
After two years of no-store growth, Sheng Shiong‟s positioning sits well in
Sheng Shiong opened two stores in this segment. Points to douse
Dec-Jan, hiking total retail space by