Stock Name: Sheng Siong
Company Name: SHENG SIONG GROUP LTD
CIMB in a Mar 16 research report says: "The new Mandai Distribution Centre is good for Sheng Siong despite higher overheads. Sheng Siong should be more shielded from fast rising rentals as about 70% of its retail space is leased from the government or related parties, rather than private landlords.
"Look for the possibility of higher dividends from the $10.4 million sale of its old warehouse. If management decides to distribute the money, FY2012 dividend yield could increase to 5.8% (2.8 cents). If they don’t, our estimated FY2012 yield will be 4.4% (2.1 cents).
"Target price of 51 cents based on 18x CY13 P/E, with slight adjustments to FY2012-2013 EPS on housekeeping matters. We see catalysts from faster store rollout, expansion into Malaysia and strong same-store sales growth. MAINTAIN OUTPERFORM."
Company Name: SHENG SIONG GROUP LTD
| Research House: CIMB | Price Call: BUY | Target Price: 0.51 |
CIMB in a Mar 16 research report says: "The new Mandai Distribution Centre is good for Sheng Siong despite higher overheads. Sheng Siong should be more shielded from fast rising rentals as about 70% of its retail space is leased from the government or related parties, rather than private landlords.
"Look for the possibility of higher dividends from the $10.4 million sale of its old warehouse. If management decides to distribute the money, FY2012 dividend yield could increase to 5.8% (2.8 cents). If they don’t, our estimated FY2012 yield will be 4.4% (2.1 cents).
"Target price of 51 cents based on 18x CY13 P/E, with slight adjustments to FY2012-2013 EPS on housekeeping matters. We see catalysts from faster store rollout, expansion into Malaysia and strong same-store sales growth. MAINTAIN OUTPERFORM."
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