Most of us Singaporeans would be familiar with the Sheng Siong supermarket chain. In my estate alone, there are two Sheng Siong supermarkets, conveniently located just a few bus stops away. Sheng Siong Group's financial performance has been phenomenal - investors who held Sheng Siong's shares from its IPO in 2011 till today would have tripled their initial investment, when dividends are included. Sheng Siong's presence in Singapore has also increased greatly - from 25 outlets at its IPO to 42 outlets today.

After such a strong run up in share price over the past five years, many of us wonder if Sheng Siong can continue to grow its profits for shareholders. Sheng Siong has been consistently trading at P/E ratios of above 20, which indicates that the market expects Sheng Siong to deliver strong growth. However, while I believe that Sheng Siong's fundamentals are good, there may be limited potential...