Sheng Siong

Sheng Siong: Daiwa notes that although Sheng Siong's expansion plans may be hindered by a challenging rental market, it is actively taking measures to boost same-store-sales (SSS) growth and contain costs. After seeing a positive customer response to the 2 stores it renovated in 2013, the company intends to renovate another 3 of its older stores during 2014, with an aim to boost SSS. Daiwa continue to like Sheng Siong for its exposure to a defensive business within the Singapore consumer sector, supported by a strong balance sheet and reasonable looking 2014E dividend yield of 4.5%. House has an Outperform rating with $0.67 TP.