This comes on the back of a 9.9% gain in revenue to $1.57 billion from $1.43 billion a year ago. This growth was primarily driven by the opening of 12 new stores in FY2025 and six comparable new stores opened in FY2024 in Singapore, as well as the improved performance of the existing stores.
As at end December 2025, cash and cash equivalents stood at $435.5 million.
Sheng Siong has proposed a final dividend of 3.8 cents per share. Along with the 3.2 cents interim dividend, the total dividend for FY2025 stands at 7 cents per share, up from 6.4 cents paid out last year. The payout ratio comes up to 70.4%.
See more: Sheng Siong posts 8.7% growth in FY2025 earnings to $149.5 mil
See also: “Super ramp is here”, Maybank maintains ‘buy’ on UMS Integration with higher target price of $1.88
Maybank Securities is keeping its “buy” call on Sheng Siong with a higher target price of $2.90 from $2.55 previously. The stock is also seen as a defensive one amid geopolitical volatility.
Analyst Hussaini Saifee forecasts Sheng Siong’s evenue and earnings to expand by a CAGR of 6% and 7% for FY2025-FY2028, underpinned by resilient macro conditions, ongoing store additions and potential market share gains as smaller competitors remain in retreat.
“Following 13 store openings in Singapore in 2025, we expect six additional stores in 2026, driven in part by expansion into malls versus its prior HDB-focused growth,” says Hussaini. He believes that the group is well positioned to secure a larger share of the nine HDB tenders currently pending or open for bidding, amid Giant, Cold Storage and Ang Mo retreating from the market.
See also: PhillipCapital raises CNMC target price to $2.34
“Trading at 24x 2026 PE, valuations are at premium to peers but Sheng Siong offers a superior growth and margin profile while remains highly defensive amid geopolitical tension,” says Hussaini.
Similarly, UOB Kay Hian is keeping its “buy” recommendation with a higher target price of $3.00 from $2.50 previously.
While results were largely in line analysts Heidi Mo and Tang Kai Jie note that 2025 was the most active year for Sheng Siong’s store expansion. They also like the stock for its strong pipeline visibility, as management remains committed to its target of opening three to five stores annually.
Meanwhile, selling and distribution expenses rose 14.3% y-o-y in FY2025, reflecting higher headcount and progressive wage model (PWM) wage adjustments. “However, we expect a more moderate 5-6% y-o-y labour cost growth going forward, as most of the PWM increases were front-loaded in earlier years,” say Mo and Tang.
Over in China, the group’s operations there remain small and loss-making. Management reiterated that it would exercise prudence in further expansion and focus on improving operational efficiency and brand recognition to enhance performance at existing stores.
The way the UOBKH analysts see it, Sheng Siong deserves a premium multiple given its consistent growth profile, strong net cash position and visible expansion pipeline.
On the other hand, DBS Group Research has kept its “hold” rating on Sheng Siong with an unchanged target price of $2.60.
For more stories about where money flows, click here for Capital Section
While analyst Chee Zheng Feng expects another strong year for the group this year, he believes that store growth and EQDP tailwinds are already largely priced in.
“We expect 1Q2026 to be particularly strong, supported by the later timing of Chinese New Year, the ongoing uplift from SG60 vouchers, and a materially larger store base (10 new stores versus 1Q25). That said, we expect growth to moderate thereafter as the contribution from new openings normalises, and the group laps the closure of several large, mature outlets as well as the high SG60 base, particularly in 2H2026,” says Chee.
He expects store openings to moderate to three per year in FY2026 and FY2027, with opportunities likely concentrated in replacement sites vacated by Ang Mo and in private malls.
In new estates, however, Sheng Siong may be at a disadvantage given NTUC FairPrice’s apparent willingness to bid aggressively, based on recent tender outcomes.
As at 2.45pm, shares in Sheng Siong are trading at $2.58.
