The Group has secured two new leases with the HDB at Bukit Panjang (5,220 square feet) and Punggol (3,360 square feet) and both of these stores are expected to commence operation in early May 2015. The Group was also the successful bidder for another HDB shop at Pasir Ris (3,200 square feet) and is waiting for HDB to grant the lease.
This would expand the group's total retail area by about 2%.
I'm loving my investment in Sheng Siong because of its excellent balance sheet, excellent cash flow and consistently profitable quarters/years with substantial growth. We should note that one way Sheng Siong could grow its top line is by opening new stores.
*huge cash holdings, no debts.
Sheng Siong is also superb in managing its costs. This is achieved by lower their input costs derived from their distribution centres. SS also owns the 506 Tampines Central instead of leasing the area. This helps control their costs over the years and also gives them the opportunity to lease out excess areas to earn additional income.
SS's share price has shot up quite substantially over the past month. I would be accumulating more lots should the price come down a bit more.
to add on, SS business is more of defensive nature....I'll nibble once it drop, if it drop.....lol.
ReplyDeleteDavid,
ReplyDeleteYup me too. Definitely on my watch list, although it has ran up quite a bit and diminished my margin of safety.