Sheng Siong

Sheng Siong: OCBC upgraded Sheng Siong Group to a buy rating on valuations grounds with the same fair value estimate of 49c per share. Note that the sell-offs from loss-covering have resulted in an attractive entry point for the stock, in which OCBC see unhindered growth prospects and a high possibility of interim div. Add that with the global economic situation remaining volatile and murky, expect a shift from eating out to in by consumers and supermarkets will be the natural beneficiaries. Additionally expect gross profit margins to inch higher than 21% as competition has started to ease up, evidenced by a drop-off in the number of items in weekly promotions