$Sheng Siong(OV8) i just went to one of the sheng siong outlet in jurong west and was surprised to see some small traffic despite it being lunch hours.

i toured a bit and saw that the store is filled up with staffs and shelves are consistently stocked up to the rear (i used to work part time in carrefour, i know this is sign of good business).

i paid close attention to all the minor details like how they layout their fresh fish zone, their grocery layout, shop renovation, location etc and i have to conclude that the management is doing a great job.

1. shop layout - a bit like ikea, like a maze with all the necessities and promotion items (with big wordings) out at the front part of the store to lure customers in and less interesting items/expensive such as stationery and kitchen wares in the corner of the store.

2. fresh food zone - layout kinda like wet market which allows those aunties to look closer at the fishes / meats. As compared to normal supermarket, the selection area/range is at least 40-50% bigger

This will win over some customers that prefer wet market for their range of selection

3. Renovation - the company didn't spend much on it, which is good as their main target is the heartlander. No frills. But they did pay close attention to the payment counters. The self check out as compared to ntuc is quicker and friendlier as they pack and scan for u then let u make your self payment.

4. Location right in the middle of hdb, hostels, shops and kopitiam. No need to say more....

finally they have bigger selection of products. for instance i didn't find this nature selection chewy sweet in the giant near my house and they have it.

Good job sheng siong!

Yes im vested. This is not a buy or sell call. Just to share how i think of my newly acquired business.

dyodd

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FA_TA

china development is still the biggest catalyst.

sheng siong needs to pump it up..

sg population 5.5 mil. china population 1.2bil

corynorth

In the past despite new stores, profits still up nicely so whats different this time to record lesser. Just curious.

PomeloFarmer

Reply to @corynorth : u can check out the latest reports, many analyst say due to high admin cost and gave details

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Fries

This is so steady can buy and keep forever

valueinvest

no change in price tdy probably due to overall market sentiment...

PomeloFarmer

Reply to @valueinvest : a rising tide lifts all boats it seems

PomeloFarmer

taken from DBS report

Earnings in line: 3Q18 earnings of S$17.7m (-9.8% y-o-y) was in line. Revenue of S$228m (+8% y-o-y) was above our expectations, but operating costs were higher than expected, which led to flat operating profit of S$19m and marginally lower than expected EBIT margins. China recorded a small loss of S$0.4m for the quarter with 9M18 loss at S$0.5m.

PomeloFarmer

Reply to @PomeloFarmer : i expect 2018 china still loss making for full year, maybe 2019 turn around for profit else they will probably exit if loss again

PomeloFarmer

SINGAPORE (Oct 30): Sheng Siong Group reported a 9.4% drop in earnings to $17.8 million for the 3Q18 ended September, from $19.7 million a year ago.

This was mainly due to the absence of a tax refund amounting to $2.2 million a year ago. Excluding this, Sheng Siong’s net profit would have increased by 1.5% in 3Q18.

3Q18 revenue rose 8.0% to $227.9 million, from $210.9 million a year ago, mainly due to the opening of 10 new stores since 2017.

However, administrative expenses climbed 16.6% to $39.0 million in 3Q18, from $33.5 million a year ago on the back of higher staff and rental costs due to the opening of new stores.

As at end September, cash and cash equivalents stood at $67.2 million.

Looking ahead, Sheng Siong says competition in the supermarket industry is expected to remain keen, particularly with the increase in the number of new HDB shops and large online retailers.

Meanwhile, the group cautions its input costs could be driven up by disruptions in the supply chain as well as escalating trade tensions.

“Going ahead, we remain committed to our store expansion plans in Singapore, especially in areas where we do not have a presence. In addition, we will be nurturing the growth of our new stores in Singapore and China,” says Sheng Siong Group CEO Lim Hock Chee.

“We will focus on improving the gross margin and cost efficiency, thereby lowering operating expenses as a percentage revenue,” he adds.

Shares in Sheng Siong closed flat at $1.08 on Tuesday.

FA_TA

Reply to @PomeloFarmer : the performance is rather flattish to me.

yes positively the stores increased. I think the management did highlighted that new stores need time to grow their reve which is true

first few months a new store still needs people to spread words on its presence so ya.. i guess need ard 1 fy to ramp up to its peak

but the rental and wages immediately eats into expenses.

so ya, quite flattish with 1% growth in btm line.. hopefully they ramp up nx quarter

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PomeloFarmer

too bad NTUC not listed else i sure buy also, this sector is like romance of the 3 kingdom... diary farm NTUC sheng siong Oligopoly, all very good profits
vested 50,000 sheng siong directly
and vested in diary farm indirectly via 1000 JMH
would love to see NTUC fair price IPO out their shares

luxcan

my choice of organic for my kids > seng siong > cold storage > ntuc.

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