Sheng Siong Earned More Than 2 Times More During Circuit Breaker Period & is Expanding Rapidly

Latest Articles

Elderly Woman Caught Stealing Clocks & Watches Repeatedly From Clementi Shop; Daughter of Shop...

For reasons we don't yet know, there are certain things you can get away once you're above the age...

Members of Altar Servers’ Society at S’pore Parish Quit Over Allegations of Inappropriate Behaviour

The Catholic Church in Singapore has investigated accusations of sexual misconduct between a former altar server and multiple underage...

HPB Launches Campaign to Promote Healthy Eating, Lifestyle Habits in Malay/Muslim Community for Ramadan

In an ideal world, brussels sprouts would taste like chocolate cake, sleeping for eight hours would burn as many...

Trainee Lawyer’s Application to be Called to S’pore Bar Denied; Employer Later Found to...

Usually, the process of trainee lawyers being called to the bar is rather uneventful.  According to Justice Choo Han Teck,...

MSF Looking to Amend Adoption Laws & Practices; Include Making Unethical Adoption Illegal, Giving...

The Adoption of Children Act, last revisited more than thirty years ago in 1985, is now under review by...

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.

Image: Imgflip

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.

Image: SayingImages

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.


Advertisements  

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.

Like writing? Goody Feed is looking for writers! Click here for more info!