🚀 New Weekly Series: 1-Min Stock Rundown (Starts Today!)

Hey Investing Kaki,

I’m excited to introduce a new weekly series called the 1-Min Stock Rundown — bite-sized breakdowns of interesting stocks, sent every Wednesday straight to your inbox.

Why this series?
✅ Save time – Quick reads, no fluff.
✅ Stay updated – Key fundamentals, growth angles & analyst takes.
✅ Smarter investing – Get fresh stock ideas, every week.

Whether you’re building a dividend portfolio, hunting for growth gems, or just want to stay sharp, this series is designed to give you high-impact info in under a minute.

🔔 Stay tuned every Wednesday - and if you find it useful, do forward this to a friend or investing buddy who might benefit too!

Now, let’s kick things off with our first feature:

🛒 Sheng Siong (SGX: OV8): Resilient Growth with Dividend Stability

📊 FY2024 Financial Performance
Sheng Siong reported a 4.5% year-on-year increase in revenue to S$1.43 billion for FY2024 while net profit rose 2.6% to S$137.5 million, driven by the opening of six new stores and improved same-store sales.

💰 Consistent Dividend Payout
The company declared a total dividend of 6.4 cents per share for FY2024, up from 6.25 cents in FY2023, maintaining a payout ratio of 70%. This translates to a forward yield of approximately 3.9%.​

🏬 Strategic Store Expansion
In 2024, Sheng Siong expanded its footprint by opening six new stores, increasing its total retail area by 7% to 661,534 square feet across 75 outlets in Singapore.

The company has already launched two additional stores in early 2025 and is awaiting the results of eight more tenders, with four being sites previously managed by competitors.​

📈 Analyst Outlook
Analysts maintain a positive outlook on Sheng Siong, citing its robust store expansion strategy and consistent dividend payouts.

The company's ability to secure new store locations, especially those vacated by competitors, positions it for continued growth in the Singapore retail market.​

💼 Operational Efficiency Amid Rising Costs
Despite facing higher staff costs due to the Progressive Wage Model and challenges in hiring local employees, Sheng Siong has managed to maintain operational efficiency by achieving a Return on Equity (ROE) consistently above 25% over the past five years.

The company's strong cash position of S$353.4 million as of December 2024 provides a buffer to navigate these challenges.​

🛍️ Competitive Landscape
Singapore's grocery retail sector is highly competitive, featuring major brick-and-mortar players like NTUC FairPrice, Dairy Farm Group (SGX: D01), and Sheng Siong. In recent years, the rise of e-commerce platforms such as Lazada's RedMart and Shopee ($SE ( ▲ 1.71% ) ) Supermarket has intensified competition, offering consumers the convenience of online grocery shopping with features like same-day delivery and personalized promotions.​

Despite this digital shift, Sheng Siong maintains a strong foothold in the market by focusing on value-for-money offerings and strategically locating its stores in suburban neighborhoods.

In addition, Sheng Siong's emphasis on fresh produce and essential items ensures consistent foot traffic, reinforcing its position amidst the growing e-commerce presence.​

📈 Conclusion
Sheng Siong remains a defensive, high-ROE, dividend-paying stock with long-term potential - a solid watchlist candidate for stability and passive income.

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Until next Wednesday,
James - breaking-down-stocks - Yeo