Sheng Siong: CIMB initiates with O/p call and $0.46 TP. House note that conditions are ripe for major store expansion in the next couple of years. Excited by the rather high certainty of earnings growth as execution risks are low. This makes Sheng Siong a powerful hedge against a recession.
Expect 35,000sf of new store space in CY12. Share price should be supported by 90% payouts in FY12/13, and 4.6% yields.
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