Sheng Siong has been trading from 0.695 to 0.72 for more than a week and seems to be holding well currently. Resistance at 0.72 strongly and if this level breakout, more upside possible to 0.75 fast. 0.72 was also the resistance formed in April 2013 before it dipped down to the 0.63 region. A good stock to hold in the long term for relatively good dividend yield and defensiveness. Those looking to average down on dips can consider entering again from 0.63 to 0.65 region if it does dip again. Can average up on the break out of the 0.72 level.
UOBKH – 30 July 2013
DMG – 24 JULY 2013
OCBC – 24 JULY 2013
Sheng Siong Group: 2Q13 results in-line
Sheng Siong Group’s (SSG) 2Q13 results came in within expectations with revenue and net profit increasing 8.7% and 20.8% YoY to S$159.8m and S$8.5m respectively. Gross profit and operating margins also improved YoY for the third straight quarter as an interim dividend of 1.2 S cents was declared (versus 1.0 S cent last year). In the coming quarters, the group could experience some pressures from lower same store sales and higher staff costs but we expect the impact to be minimal given the group’s effective cost management initiatives and full-year contributions from new stores opened last year. In addition, the operating environment remains conducive for the group with resilient supermarket expenditure and lower inflation expectations. Reiterate BUY for SSG with a slightly lower fair value estimate of S$0.80 (S$0.82 previously). (Lim Siyi)
Sheng Siong Group’s (SSG) 2Q13 results came in within expectations with revenue and net profit increasing 8.7% and 20.8% YoY to S$159.8m and S$8.5m respectively. Gross profit and operating margins also improved YoY for the third straight quarter as an interim dividend of 1.2 S cents was declared (versus 1.0 S cent last year). In the coming quarters, the group could experience some pressures from lower same store sales and higher staff costs but we expect the impact to be minimal given the group’s effective cost management initiatives and full-year contributions from new stores opened last year. In addition, the operating environment remains conducive for the group with resilient supermarket expenditure and lower inflation expectations. Reiterate BUY for SSG with a slightly lower fair value estimate of S$0.80 (S$0.82 previously). (Lim Siyi)
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