Someone asked me about my thoughts on Dairy Farm International Holdings Ltd and Sheng Siong Group Ltd. First to clarify, I think it is impossible to give a detailed analysis on both these companies in a single blog post. Dairy Farm has an Enterprise Value of USD 8.90B (SGD 12.6B) while Sheng Siong has an Enterprise Value of SGD 1.12B. A single blog post would not do justice for an analysis between these two big companies.

1. Scale

It could be a case of David (Sheng Siong) vs Goliath (Dairy Farm). To get a scale of Dairy Farm, I have extracted the following from the 2014 Annual Report:

• 6,101 retail outlets in China, Taiwan, Hong Kong, Macau, Vietnam, Cambodia, The Philippines, Malaysia, Brunei, Singapore, Indonesia.
• 2,279 Convenience Stores, 1,132 Supermarkets/Hypermarkets, 1,800 Health and Beauty, 881 Restaurants & 9 Home Furnishings.
• Giant, 7-eleven, Market Place, Starmart, Mannings, Guardian, GNC, IKEA in Hong Kong and Taiwan, Maxim’s in China, Hong Kong & Vietnam.

Having said that, this is probably one of the reason why I ......