To The Moon

🌟🌟🌟As Singapore celebrates SG60, marking 6 decades of independence, ingenuity and identity, I am launching a personal tribute to this milestone with a series of articles spotlighting the most compelling companies listed on the SGX.

If you are inspired to take part in this journey, there is no better time.  Tiger Brokers $Tiger Brokers(TIGR)$ is celebrating SG60 with a special promotion - from now until October 17, enjoy zero commission, zero custodian fes and stand a chance to win attractive prizes as you invest in Singapore's future.  It is a timely opportunity to align your portfolio with the spirit of SG60.

Please follow me to learn more about the companies that define Singapore's past, shape its present and inspire its future.

Sheng Siong at SG60:  Fresh Growth, Steady Dividends and a Heartland Legacy

Walking through a $Sheng Siong(OV8.SI)$  aisle always feels like home - familiar produce stalls, friendly shelves lined with house brands and staples that echo Singapore's neighbourhood heartlands.  This quarter, our homegrown supermarket chain delivered another chapter in its own SG60 story - steady growth, fortified margins and a dividend that keeps our conviction alive.

Founding Roots :  From Pig Farm to Heartland Aisles

Sheng Siong's story begins in 1985 when 3 brothers - Lim Hock Chee, Lim Hock Eng and Lim Hock Leng - pivoted from their family pig farm in Punggol to retailing chilled pork out of a single stall in Ang Mo Kio.  With seed capital from their father, Lim Kim Siong and an opportunity to take over a defunct Savewell supermarket unit, turned that pork stall into the first Sheng Siong provision shop.  From those humble roots, the Lim brothers expanded methodically - embracing no frills pricing, lean staffing and a mix of wet and dry goods, growing from just 1 heartland store to over 80 outlets island wide today.

Q2 2025 Performance 

In the 2nd quarter of 2025, Sheng Siong reported revenue of SGD 361.7 million, a 7% year on year increase, while net profit attributable to shareholders (PATMI) rose to SGD 33.8 million, up 0.5% from Q2 24.  Gross margin hit a record high of 31.4%, driven by a richer mix of fresh produce even as staffing costs edged up.  Free cash flow remained robust at SGD 51 million, and the interim dividend held at 3.2 Singapore cents per share, rewarding long term shareholders like me with a reliable payout.  The current dividend yield is 3.15%.

Anslysts Expectations and Upgrades

Analysts have applauded Sheng Siong's resilience.  UOB Kay Hian maintained its Buy call and raised the target from SGD 1.97 to SGD 2.40, forecasting further margin and store count expansion.

Phillip Securities also reiterated an Accumulate rating, citing operating leverage returning as new stores sales ramp up and wage growth moderates.  Together these analysts signal that Sheng Siong still have room to grow in the coming quarters. 

The SG60 Connection 

Founded just 30 years after Singapore's independence, Sheng Siong has grown alongside modern Singapore - from a small stall in Yishun to the 3rd largest supermarket chain on the island.  Its expansion mirrors our nation's evolution - nurturing communities, creating jobs and thriving amid every phase of growth and change. 

Dividend Yield and Stock Performance 

At the last closing price of SGD 2.03, Sheng Siong yields 3.15% with dividends paid semi annually at 3.2 cents per share.  Year todate Sheng Siong's share price has rallied 24% and in 2024, Sheng Siong has jumped by 34%.  I am up 30%, a testament to my conviction and the power of buying a quality stock with  a heartland moat. 

Why Invest in Sheng Siong? 

Sheng Siong's blend of resilient cash flows, high margin fresh offerings and targeted store rollouts in underserved estates offers both value and growth.  A net cash position of SGD 367 million provides balance sheet strength for further expansion, while SG60 voucher campaigns and tailored promotions continue to drive footfall through every heartland.  

This combination of reliable dividends, double digit sales growth and deep community roots makes Sheng Siong a cornerstone in any Singapore focused portfolio. 

Concluding Thoughts 

Investing in Sheng Siong is more than chasing returns.  It is embracing a piece of Singapore's living history.  As we celebrate 6 decades of nation building, Sheng Siong, our homegrown supermarket champion stands as a beacon of homegrown resilience and shared prosperity.  

Here's to riding the next wave of heartland growth together. 

Go Long Go Strong Go Sheng Siong! 😍😍😍🇸🇬🇸🇬🇸🇬🌈🌈🌈💰💰💰

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