Maybank Kim Eng raised its target price for supermarket
operator Sheng Siong Group Ltd to S$0.60 from S$0.52
and kept its 'buy' rating, citing its high growth potential and
By 0152 GMT, Sheng Siong shares were unchanged at S$0.49,
and have gained 11.4 percent since the start of the year,
compared with the FTSE ST Small Cap Index's 21.4
Sheng Siong is able to maximise its store space while
designing each store to suit different customer demographics in
the area, Maybank noted.
The supermarket operator also offers the lowest prices in
Singapore, while investing in technology such as electronic
price tagging to improve its efficiency and allow high inventory
Maybank is pegging Sheng Siong's valuations to competitor
Dairy Farm International's 12-month forward price to
earnings ratio of 27 times, with a 20 percent discount.
0953 (0153 GMT)