0825 GMT - Sheng Siong Group could have to contend with weaker groceries demand next year, CGS-CIMB says as it reiterates a hold rating on the stock. With Singapore expected to further ease restrictions as it shifts to Covid-endemic living, the company's same-store sales growth could turn negative in 2022 as demand, which has been elevated in 4Q 2021, will likely taper. The supermarket-chain operator also faces growing competition from online grocery shopping platforms, with online sales making up more and more of the industry's sales mix. The brokerage cuts its 2022-2023 EPS estimates for Sheng Siong by 1.7%-3.8% and lowers the stock's target to S$1.50 from S$1.60. Shares are 0.7% higher at S$1.43. (ronnie.harui@wsj.com)
Sheng Siong May Be Facing Weaker Groceries Demand in 2022 -- Market Talk
The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.