One thing that always stayed consistent during this pandemic period: Sheng Siong rising as other businesses fall.
Which isn’t a surprise when “going out” during the circuit breaker meant grocery shopping and basically nothing else.
On the flip side, Sheng Siong has profited enough that their family even became billionaires.
And if you’re a shareholder? Woo, you’re in for a lotta good news. So you can shout together with me: Bai bei bai bei!
Net Profit Doubled In the Second Quarter of 2020 To S$46.2 Million
While obviously no matter good Sheng Siong is doing they will never reach Bai Bei, twofold is still pretty good.
Revenue went up 75.8% to S$418.7 million, for a net profit of S$46.2 million in the three month period ending 30 June 2020.
And this S$46.2 million is slightly higher than twofold compared to last year’s S$18.4 in the same quarter.
Oh yeah, their stores in Kunming in China are also growing in revenue.
So, as a stockholder of Sheng Siong, should you continue rubbing your hands together while looking at the potential money? The answer is yes.
Last year, Sheng Siong’s earnings per share were $1.23. Now, it’s $3.07.
Sheng Siong shares closed at S$1.73 (this is different from earnings per share). A year ago, it was trading at $1.16.
Remember Sheng Siong cash dividends? Well, that’s getting doubled too! They declared an interim cash dividend of 3.5 cent per share.
With selling prices underpinned by strong demand, diversification in sourcing resulting in stable input prices, and higher sales of house-brand items that give a higher gross margin, gross margin also improved to 28.1% up from 27.4% last year.
One last thing, government grants also allowed Sheng Siong to perform so well.
You’re probably wondering then: what is Sheng Siong going to do with all this money? Like any self-respecting capitalist:
Sheng Siong Opening New Outlets
The two confirmed outlets are Sengkang West in July 2020, and an outlet in Potong Pasir with no specific date of opening yet.
They have successfully put in a bid for a new outlet in Tampines, but are still waiting for the execution of the tenancy agreement.
Oh yes, while other businesses chose not to renew leases, Sheng Siong is signing new tenancy agreements.
Watch this for a complete summary of what REALLY happened to Qoo10, and why it's like a K-drama:
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