The analyst forecasts an annualised uplift of about $500 million in FY2026, which corresponds to around 6% industry growth. Accordingly, Chee sees supermarket FY2025 results at 4.4% relative to 0.1% in 1HFY2025, with 2HFY2025 potentially trending closer to 3% level post the initial voucher issuance surge.
The analyst is keeping his forecast unchanged, which already factors in the SG60 voucher tailwind and implies a 8% top-line growth in FY2026 (versus industry at 6%), with the additional delta driven by store network expansion.
“We also expect a disproportionately stronger earnings growth of about 10% y-o-y, supported by operating leverage and economies of scale,”
Hence, Chee downgrades Sheng Siong to ‘Hold’ with an unchanged target price of $2.60 as he believes that FY2026 estimates already reflect the upside from SG60 vouchers.
“With the company trading at close to 24 times FY2026 earnings, we believe SG60 vouchers and EQDP tailwinds have been largely priced in,” says Chee.
As at 9.23am, shares in Sheng Siong are trading 3 cents higher, or 1.15% up at $2.65.
