SINGAPORE: Despite Sheng Siong’s share price tumbling 15 per cent over three trading sessions, some analysts remain optimistic about the supermarket operator’s outlook.
“Structurally, Sheng Siong is gaining market share in the grocery sector especially in fresh food sales,” Mr Paul Chew, head of research at Phillip Securities Research, told CNA on Tuesday (Nov 3).
Sheng Siong opened three stores in the third quarter ending Sep 30, raising the group’s number of new stores for the year to seven. The group now operates a total of 92 stores in Singapore.
In Mr Chew’s view, new store openings are the core driver of the company’s growth and share gains, and competition has retreated over the past two to three years.
CGS International Securities, too, likes Sheng Siong for its earnings growth, which is backed by new store expansion and strong operational execution, said analyst Meghana Kande.
CGS International Securities has maintained its “add” call on Sheng Siong, while Phillip Securities has a “hold” position.
Read Full Article At Source
