Here are 2 factors that could boost Sheng Siong's earnings

Store expansion will be a huge factor.

According to CIMB, Sheng Siong earnings growth is expected from: 1) store expansion in Singapore; and 2) earnings from maturing new stores.

Further out, a soon-to-be launched e-commerce business and potential expansion into Malaysia are possible earnings drivers.

Here's more:

Eight new stores, representing about 13% of its retail space, were opened in FY12. These stores should contribute in FY13, going by management’s
operating track record. New stores typically take about a year to mature, and three years to reach peak sales.

Management is actively sourcing for new store space. We can expect stores to increase from 33 to about 50 in the next couple of years. 

Dairy Farm, its closest grocery peer, trades at 27x CY14 P/E. FMCG retailers in Indonesia and Thailand trade at 23x and 25x respectively. This compares with the 20x CY14 P/E for Sheng Siong. We argue that strong cash flows characteristic of its business more than compensate for its lower growth.