Search

NEWS
RETAIL | Staff Reporter, Singapore
Published: 06 Jun 12
5027 views


Underdog no more: FairPrice and Dairy Farm get competition with Sheng Siong

It may have the smallest market share of 18%, but it is the most efficient with revenue per sq m 40% higher than NTUC FairPrice.

According to Maybank KimEng, Sheng Siong Group is one of the top three supermarket operators in Singapore with a market share of 18%, behind NTUC FairPrice and Dairy Farm International (Cold Storage & Shop’N’Save). Together, the trio controls 83% of the domestic market, a predominance which we believe helps ensure stable and controlled competition while barring new entrants which lack economies of scale.

Here's more from Maybank Kim Eng:

The most efficient player. Sheng Siong may be the smallest player in this tripartite situation but it is the most efficient of the trio, with revenue per sq m 40% higher than NTUC FairPrice. Its asset-light business model carries no debt and enjoys positive cash return cycles. With capex already incurred for a recently completed 543,000 sq m distribution centre, shareholders can look forward to further improvements in operating margins and faster capacity expansion.

Dividend payout to be sustained after FY12. Although Sheng Siong’s 90% dividend payout commitment (for its IPO) ends in FY12, we strongly believe that it will be sustained. The group has a strong net cash position of SGD149m, a defensive business model with positive working capital cycle, free cash flow yield of 8.7% and no major capex requirement in sight.

Growth secured for 2012. Management has secured two outlet spaces which has commenced operations this quarter. They would increase the group’s current store space of 367,800 sq ft by 3.6%. We estimate FY12F-14F recurring net earnings to grow at 8.5% CAGR, driven by steady outlet growth, better utilization in new outlets and improving margins. Given its target of low-to-mid-end mass market, it is also a recession-resilient business. 



Sign up for our newsletter

 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.

Tags: FairPrice, Dairy Farm, Sheng Siong, Singapore supermarket operators

LATEST RETAIL JOBS »
  • No jobs posted on this category.
PRINT ISSUE »

Subscribe Now
Singapore singled out in Asia for weak M&A appetite

284 views

Is the KL-Singapore High-Speed Rail project still on the right track?

671 views

The changing taste of Asian art collectors bodes well for the Western art market

44 views

MOST READ EXCLUSIVES

Here are the credit card deals you shouldn't miss during the Great Singapore Sale 2015

Here are the credit card deals you shouldn\'t miss during the Great Singapore Sale 2015

The GSS begins today.

by MARIANNE ESTIOCO
29 May 2015 | 29027 views
 

Check out P&G Singapore’s new office with outdoor working spaces

Check out P&G Singapore’s new office with outdoor working spaces

It occupies 6 contiguous floors within The Metropolis.

by LEE ANNE BABIERRA
30 Apr 2015 | 25417 views

Bosch’s cutting-edge regional HQ is one of the greenest buildings you’ll find in Singapore

Bosch’s cutting-edge regional HQ is one of the greenest buildings you’ll find in Singapore

It boasts an automated sun-shading system.

by MARIANNE ESTIOCO
7 Jul 2015 | 13953 views
 

This retired banker's fintech startup makes complicated wealth management a piece of cake

This retired banker\'s fintech startup makes complicated wealth management a piece of cake

Mesitis provides low-cost aggregated wealth reporting for all investors.

by MARIANNE ESTIOCO
25 May 2015 | 9200 views

Husband and wife duo ditch plum banking jobs to shake up Singapore’s HR scene

Husband and wife duo ditch plum banking jobs to shake up Singapore’s HR scene

This small start-up has global dreams.

by MARIANNE ESTIOCO
8 Jul 2015 | 8847 views
 

10 smart ways to spend your GST Vouchers

10 smart ways to spend your GST Vouchers

Regardless of how much you spend, aim to spend it well.

by KRISANA GALLEZO-ESTAURA
8 Jul 2015 | 7218 views

Check out this quaint co-working space that occupies 5 conservation shophouses

Check out this quaint co-working space that occupies 5 conservation shophouses

It has private offices, an events space, and even a beer garden.

by MARIANNE ESTIOCO
22 May 2015 | 4769 views
 

TAIGER’s office bids goodbye to claustrophobia-inducing cubicles

TAIGER’s office bids goodbye to claustrophobia-inducing cubicles

Walls and windows function as a big canvas.

by MARIANNE ESTIOCO
15 Jul 2015 | 3980 views

Cocoa Colony to open 12 more outlets in Singapore by end-2015

Cocoa Colony to open 12 more outlets in Singapore by end-2015

The cafe chain seeks to target the masses.

by KRISANA GALLEZO-ESTAURA
21 Jul 2015 | 3920 views
 

Hootsuite boosts its APAC team opening a new office in Singapore

Hootsuite boosts its APAC team opening a new office in Singapore

Its VP talks about the importance of the company’s culture in line with opening the new space.

by LEE ANNE BABIERRA
18 Jun 2015 | 2863 views

Get bitten by the travel bug in Skyscanner’s quirky Asia-Pacific headquarters

Get bitten by the travel bug in Skyscanner’s quirky Asia-Pacific headquarters

Meeting rooms are named after Asian tourist spots.

by MARIANNE ESTIOCO
5 Jun 2015 | 2815 views
 

Bye bye blurry video calls: Here’s a WebRTC startup that offers close to HD video quality using any device

Bye bye blurry video calls: Here’s a WebRTC startup that offers close to HD video quality using any device

Find out how they are building the next generation of web communications.

by LEE ANNE BABIERRA
2 Jun 2015 | 2288 views

HAITE Group launches its first aviation training center in Singapore

HAITE Group launches its first aviation training center in Singapore

It is the first major investment by a Chinese aerospace firm.

by KRISANA GALLEZO-ESTAURA
13 May 2015 | 1929 views
 

El Mero Mero founder says Mexican food is not just about tacos and burritos

El Mero Mero founder says Mexican food is not just about tacos and burritos

See how a former legal professional pursued his passion for food.

by LEE ANNE BABIERRA
26 May 2015 | 1655 views

This bold ad film tells you what happens when maids are not given their due day off

This bold ad film tells you what happens when maids are not given their due day off

‘Mums & Maids’ generated 5 million views in 5 days.

by KRISANA GALLEZO-ESTAURA
7 May 2015 | 1390 views
 

This handy app lets you book nearly any service under the sun

This handy app lets you book nearly any service under the sun

Find technicians, babysitters and more with Page Advisor.

by MARIANNE ESTIOCO
8 Jun 2015 | 1337 views

Singapore retailers turn to technology to boost productivity

Singapore retailers turn to technology to boost productivity

Shopping for the first child is always challenging for the parents.

by STAFF REPORTER
15 May 2015 | 1207 views
 

This app is out to prove that Singapore is anything but boring

This app is out to prove that Singapore is anything but boring

And Sugar helps SMEs in the process too.

by MARIANNE ESTIOCO
2 Jun 2015 | 1204 views

PwC Singapore launches its first Investment Fund Centre in Asia

PwC Singapore launches its first Investment Fund Centre in Asia

Expanding its presence in the asset management sector across Asian region.

by LEE ANNE BABIERRA
29 Jun 2015 | 1185 views
 

Hey, boss: This startup wants to be your all-around sidekick

Hey, boss: This startup wants to be your all-around sidekick

Alpha7 wants SMEs to join the Cloud.

by STAFF REPORTER
16 Jun 2015 | 1133 views

Get your head in the game: Testing challenges await the Internet of Things

Get your head in the game: Testing challenges await the Internet of Things

Industry experts share their concerns over security and testing standards.

by LEE ANNE BABIERRA
4 Jun 2015 | 1055 views
 

How do you like getting cash rebates when shopping online?

How do you like getting cash rebates when shopping online?

ShopBack introduces this concept in Southeast Asia.

by STAFF REPORTER
21 Jul 2015 | 975 views

Need some help? This app lets you book a cleaner in five minutes flat

Need some help? This app lets you book a cleaner in five minutes flat

Sendhelper is the new breed of booking apps.

by MARIANNE ESTIOCO
26 May 2015 | 939 views
 

Leave your valuables unattended: This on-demand cleaning service offers $1m liability insurance

Leave your valuables unattended: This on-demand cleaning service offers $1m liability insurance

Book a reliable cleaner in seconds with Helpling.

by MARIANNE ESTIOCO
22 Jun 2015 | 899 views

Former strategy advisor reveals aspirations with his newest mobile app startup

Former strategy advisor reveals aspirations with his newest mobile app startup

Rediscover and fall in love with your city all over again.

by LEE ANNE BABIERRA
22 May 2015 | 899 views
 

Asian corporates face tough balancing act as sustainability issues mount

Asian corporates face tough balancing act as sustainability issues mount

Discover the changing face of Asian CSR.

by MARIANNE ESTIOCO
1 Jul 2015 | 511 views
close Don't Show Again

STAY INFORMED! Get our free weekly newsletter