Broker's report: OSK-DMG keeps buy call on supermarket operator Sheng Siong
Published on Aug 8, 2014 2:49 PM
SINGAPORE - Supermarket chain operator Sheng Siong has continued to garner positive reviews from brokerage OSK-DMG.
Issuing a report on the third largest supermarket player on Friday, OSK-DMG said the firm offers resilient growth despite a challenging operating environment.
The brokerage expects Sheng Siong to see improved sales growth and expanded gross profit margin as it embarks on new strategies that include changes in sales mix and operating hours.
By tweaking its sales mix and increasing its proportion of sales from fresh product rather than dry produce, as well as having more house brands compared with third-party vendor goods, Sheng Siong could see higher gross margins.
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