Sheng Siong shares soar 8% to all-time high on improved Q3 earnings
The surge comes amid higher third-quarter net profit and recent expansion moves
[SINGAPORE] Shares of supermarket operator Sheng Siong rose on Monday (Nov 3) morning after the mainboard-listed group posted a nearly 12 per cent boost to third-quarter earnings compared with the year-ago period.
As at 9.50 am, the counter rose as much as 8.2 per cent or S$0.19 to S$2.51, with some 3.4 million shares changing hands. This is the highest price Sheng Siong shares have reached since it was listed on the Singapore Exchange in August 2011, according to data from ShareInvestor and Yahoo Finance.
By 10.43 am, it had eased to S$2.45, still up by 5.6 per cent or S$0.13, with more than six million shares transacted.
Q3 earnings and expansion
On Oct 30, Sheng Siong reported that its net profit rose 11.9 per cent to S$43.7 million for its third quarter ended Sep 30, from S$39.1 million in Q3 2024.
This translated to an 11.9 per cent increase in earnings per share to S$0.0291 for the quarter, from S$0.026 in the year-ago period.
For the three months, its revenue grew 14.4 per cent to S$415.5 million, from S$363.2 million previously.
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The improvements were attributed to an increase in its number of stores to 90 in the recent Q3, compared with 79 in the previous corresponding quarter. Comparable same-store sales also improved by 4.4 per cent on the year.
Its gross profit was up 15.2 per cent year on year at S$131.1 million, compared to S$113.8 million.
The company in September leased a new site in Sungei Kadut to house its headquarters, warehouse and distribution centre. The move from its Mandai Link site to the new 61,297 square metre property – which is 2.5 times bigger and can support at least 120 supermarkets – will support its expansion and long-term growth.
Sheng Siong also opened four stores in Q3 and one in October, taking its store count in Singapore to 85.
Looking ahead, the group expects grocery demand to stay resilient, with consumer spending in supermarkets and heartland shops supported by CDC and SG60 vouchers – which are accepted at Sheng Siong supermarkets. However, it noted that intense competition may pressure margins.
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