Since IPO in 2011, Sheng Siong (SGX:OV8) shares returned more than 200%.
And at one point, it hit an all-time high of S$1.75 per share.
My last article write-up was here.
Source: ShareInvestor Webpro
Can Sheng Siong shares continue to grow?
Consider this: the grocery retail business is intense.
Grocers deal with high rental and labour costs.
And e-commerce is a major disruption to grocers.
That’s why grocery retailer have razor thin profit margins.
Leaving only the two biggest Singapore supermarkets — NTUC FairPrice and DairyFarm International to dominate the grocery industry.
Yet, Sheng Siong has grown to become the third largest grocery retailer in Singapore.
Today, Sheng Siong has a market capitalization of S$2.3 billion, with 63 outlets in Singapore.
What’s different about Sheng Siong
You see, Sheng Siong cannot compete head-on NTUC FairPrice and DairyFarm.
Both competitors have huge financial backers.
The Singapore government owns NTUC FairPrice.
And the Jardine Group, a rich family conglomerate that owns DairyFarm....