Sheng Siong Group Ltd (OV8)

Sheng Siong Group is engaged in the supermarket operations and trading of general and wholesale importers and exports.

The Company operates through the provision of supermarket supplies and supermarket operations segment through 40 supermarket/grocery stores located all across the island.

The Company’s chain stores are designed to provide customers with various shopping options ranging from an assortment of live, fresh and chilled produce, such as seafood, meat and vegetables to packaged, processed, frozen and/or preserved food products, as well as general merchandise, including toiletries and essential household products. The company has recently ventured their operations into China as well.

InvestWhizz score: 53.85%

Fundamental Analysis:

Key highlights:

1. Steady stream of positive cash flow (essential for long term growth)
2. At 85% dividend payout ratio, current share price command a 3.7% Dividend yield (depend on portfolio, 3.7% can be reasonable to some investors)
3. Stable gross profit margins (at around 25%)
4. Consistent growth in net profits
5. No Debt & negative cash conversion cycle (i.e. most of their sales are cash/credit card) where they would not have risk of bad debts

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