Sheng Siong is at almost at 20X PE. Those guys at Sheng Shiong must be real happy.
From 33 cents to 48.5 cents in 1 month, it is one of the most successful IPOs.
The dividend yield is what supports the stockprice. At almost 5%, it beats fixed deposit rates. When the market sentiment turns bullish again, this stock will underperform, though, as investors go for capital gain
cheongwee, why do u say it's a manipulated stock?
I would think that as a tightly held stock, the price is not difficult to push up.
Major shareholders hold 85% -- only 15% is free float.
Of the free float, the big boys are holding on for the yield ! Anchor investors are JF Asset
Management Limited, Prudential Asset Management (Singapore) Limited, FIL
Investment Management (Hong Kong) Limited, VPL Funds and Kenrich Partners Pte
Ltd.
Sheng Siong positioning as a defensive stock helps in attracting investors to buy in open market.
The fact that its dividend payout ratio is 90% of NPAT certainly helps. It is a stock that you can buy and have a good sleep at night, without worrying about corporate governance issues.
I read the IIFL report but have concerns about the analyst's bullish estimates of S$50m profit in 2013. If you read Sheng Siong prospectus, they will be closing several stores this year as their leases expired and they could not renew them. These stores do make up a susbtantial percentage of their 2010 sales.
OCBC is the lead manager and should be issuing a research report pretty soon. 40-43 cents seem a safe haven to park some idle cash and wait for the bigger stock brokerages to initiate coverage.
This is just my 2-cent view and not a recommendation to trade. Have a good weekend.
Apparently there is no truth to talk/gossip that there is a relationship between Sheng Siong boss' son and LHL's daughter. The boss gets asked this all the time since rumor surfaced & he is puzzled how the rumor has criss-crossed the country.... LOL
Sheng Siong opened an outlet in Imperial Court in Thomson area, taking over the site occupied by Shop N Save. I have been to Shop N Save a few times -- didn't see much crowd and I didn't like the shortage of car park space in the basement of the building.
So, boy, was I surprised to hear from friends... that Sheng Siong in Imperial Ct is doing v well. If true, why? Why is the SS brand able to magetise consumers?
Sheng Siong -- steady grower has hit 74 cents. Will its upcoming final dividend be higher than FY13's 1.4 cents? Possibly, because SS will likely record a higher profit. Final dividend predicted to be 1.6 cents by CIMB. (Interim already paid 1.5 c)
