CIMB Research on 1 April 2013
SHOP n Save's 57 stores will be re-branded into Giant stores from April 1. Dairy Farm's retreat from the budget segment highlights Sheng Siong's competitive positioning in this space.
We upgrade to "outperform" (from "neutral") on evidence of Sheng Siong's dominance in the budget segment. Our estimates are maintained.
We raise our target price (to $0.75), which is based on a higher applied multiple of 23 times 2014 PE (previously 18 times) on a 5 per cent discount to Dairy Farm (previously 20 per cent). We see catalysts as earnings delivery from new stores and continued store expansion.
OUTPERFORM
No comments:
Post a Comment