I think most people would be able to relate to Sheng Siong because they’ve probably seen it around or shopped in it before. It’s quite surprising how people show little interest to things they see or visit every other day. I thought it would be quite interesting to look into Sheng Siong’s business since I buy my favourite sweets there from time to time. Initially I didn’t think much of Sheng Siong until I actually dug down into its financials. On hindsight, what surprises me is how Sheng Siong consistently escapes my filtering process, missing out on such a great business for so long.

Strengths

  1. Resilient Business
  2. Strong Financials
  3. No Debt
  4. Positive Free Cashflow (FCF)

Resilient Business

Sheng Siong belongs to a class of resilient business irregardless of the business cycle because it is a provider of food and groceries. Even if the market crashes, you still need to eat …