Sheng Siong

Sheng Siong: Daiwa maintains at Outperform with TP $0.73. Likes the stock for its defensive business within the Singapore consumer sector, supported by a strong balance sheet and reasonable looking 2013e dividend yield of 3.9%. The stock trades at 23.3x FY13e P/E, a 16% cheaper than peer Dairy Farm. Management remains focused on executing its operational plan at a measured pace (2-3 new stores per year), in areas where it has limited exposure. Says it remains on track to achieve its 2013 revenue guidance of high single-digit growth, as it rolls out a host of initiatives that could have a positive impact on SSS (same store sales) growth, including i) renovation of old stores, ii) on going pdt mix enhancements to encourage sales of higher margin in-house label pdts, iii) converting existing stores into 24 hr ones.