, Singapore

Sheng Siong greets 2015 with $130m war chest

It opened its 35th supermarket at Tampines Central today.

Sheng Siong recently dispelled concerns on its store count growth.

According to a report by OSK-DMG, the company is open to buying new retail spaces for its supermarket only if the available location is considered essential.

Currently Sheng Siong has 35 outlets, 15 below its target of 50 set out in IPO. Management guided that out of the 15 new locations, only 5 are essential locations.

The company has about SGD130m of war chest on hand. Together with its cash generative model, analysts estimate that the company would be able to purchase 1 store and lease 1 store in both FY15F and FY16F. Management also guided that it is committed to 90% payout ratio up to FY16F. 

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