In supermarket scene, there seems to be lot of opportunities for growth and stable margins. So i do see years ahead of us.
Cory
(15-04-2015, 10:33 AM)corydorus Wrote: [ -> ]In supermarket scene, there seems to be lot of opportunities for growth and stable margins. So i do see years ahead of us.
Cory
You need to do it right, for the growth and stable margin. DairyFarm Cold Storage premium stores seemed OK, but not for the Shop N Save or Giants stores.
(vested)
(15-04-2015, 11:29 AM)CityFarmer Wrote: [ -> ] (15-04-2015, 10:33 AM)corydorus Wrote: [ -> ]In supermarket scene, there seems to be lot of opportunities for growth and stable margins. So i do see years ahead of us.
Cory
You need to do it right, for the growth and stable margin. DairyFarm Cold Storage premium stores seemed OK, but not for the Shop N Save or Giants stores.
(vested)
Hi Cityfarmer,
I thought Giant stores are now doing not too bad. I frequent IMM Giant regularly . Of coz, I know giant cant be compared to DairyFarm.
regards
Oldman9
(15-04-2015, 03:26 PM)Oldman9 Wrote: [ -> ] (15-04-2015, 11:29 AM)CityFarmer Wrote: [ -> ] (15-04-2015, 10:33 AM)corydorus Wrote: [ -> ]In supermarket scene, there seems to be lot of opportunities for growth and stable margins. So i do see years ahead of us.
Cory
You need to do it right, for the growth and stable margin. DairyFarm Cold Storage premium stores seemed OK, but not for the Shop N Save or Giants stores.
(vested)
Hi Cityfarmer,
I thought Giant stores are now doing not too bad. I frequent IMM Giant regularly . Of coz, I know giant cant be compared to DairyFarm.
regards
Oldman9
Both gaint and cold storage belong to Dairy farm.
(Vested at dairyF not SS)
(15-04-2015, 03:46 PM)WolfT Wrote: [ -> ] (15-04-2015, 03:26 PM)Oldman9 Wrote: [ -> ] (15-04-2015, 11:29 AM)CityFarmer Wrote: [ -> ] (15-04-2015, 10:33 AM)corydorus Wrote: [ -> ]In supermarket scene, there seems to be lot of opportunities for growth and stable margins. So i do see years ahead of us.
Cory
You need to do it right, for the growth and stable margin. DairyFarm Cold Storage premium stores seemed OK, but not for the Shop N Save or Giants stores.
(vested)
Hi Cityfarmer,
I thought Giant stores are now doing not too bad. I frequent IMM Giant regularly . Of coz, I know giant cant be compared to DairyFarm.
regards
Oldman9
Both gaint and cold storage belong to Dairy farm.
(Vested)
Hi Wolft
Thank you. I know that. I was referring to the quality aspect.
Rgds
Oldman9
(15-04-2015, 03:26 PM)Oldman9 Wrote: [ -> ] (15-04-2015, 11:29 AM)CityFarmer Wrote: [ -> ] (15-04-2015, 10:33 AM)corydorus Wrote: [ -> ]In supermarket scene, there seems to be lot of opportunities for growth and stable margins. So i do see years ahead of us.
Cory
You need to do it right, for the growth and stable margin. DairyFarm Cold Storage premium stores seemed OK, but not for the Shop N Save or Giants stores.
(vested)
Hi Cityfarmer,
I thought Giant stores are now doing not too bad. I frequent IMM Giant regularly . Of coz, I know giant cant be compared to DairyFarm.
regards
Oldman9
I am commenting base on relative performance among Cold Storage, Giant, Shop N Save within DairyFarm. The following statement from DairyFarm AR 2014 illustrate the point
"In Singapore, fragile consumer confidence, challenges in the labour market and escalating costs adversely affected the overall performance. Cold Storage was broadly stable...., but Giant struggled against its mid-market competitors..." Page 14 AR 2014
Once the China venture proven "Sheng Siong way" is also applicable outside Singapore, the company is very likely the future DairyFarm. One merit of retailer business, is highly scale-able, high tenth of new stores per year, with minimum capex, isn't unthinkable...
(vested)
Sheng Siong posts 12.1% rise in 1Q earnings to $14.1 million
SINGAPORE (Apr 23): Supermarket chain Sheng Siong Group ( Financial Dashboard) reported a 12.1% rise in 1Q earnings to $14.1 million from $12.5 million a year ago.
Revenue increased 4.6% to $198.4 million in 1Q largely due to new stores in Penjuru and Block 506 Tampines Central and comparable same store sales growth.
Meanwhile, revenue growth at the Bedok Central store has recovered, although revenue growth remained flat at the Tekka store.
Gross profit margin also increased to 24.4% in 1Q from a year ago, driven mainly due to reduced input costs derived from the distribution centre.
As at March 31, the group has cash and cash equivalents of $139.4 million.
...
http://www.theedgemarkets.com/sg/article...41-million
(24-04-2015, 09:34 AM)CityFarmer Wrote: [ -> ]Once the China venture proven "Sheng Siong way" is also applicable outside Singapore, the company is very likely the future DairyFarm. One merit of retailer business, is highly scale-able, high tenth of new stores per year, with minimum capex, isn't unthinkable...
(vested)
Sheng Siong posts 12.1% rise in 1Q earnings to $14.1 million
SINGAPORE (Apr 23): Supermarket chain Sheng Siong Group ( Financial Dashboard) reported a 12.1% rise in 1Q earnings to $14.1 million from $12.5 million a year ago.
Revenue increased 4.6% to $198.4 million in 1Q largely due to new stores in Penjuru and Block 506 Tampines Central and comparable same store sales growth.
Meanwhile, revenue growth at the Bedok Central store has recovered, although revenue growth remained flat at the Tekka store.
Gross profit margin also increased to 24.4% in 1Q from a year ago, driven mainly due to reduced input costs derived from the distribution centre.
As at March 31, the group has cash and cash equivalents of $139.4 million.
...
http://www.theedgemarkets.com/sg/article...41-million
Cf,
The part which worries me is china expansion. If tesco went into china and came out bleeding, then what would make ssg different from them? Also, tesco laid foot in china years earlier n for a very long time. Bearing in mind that buffet was also vested in tesco.
Singapore retail mkt is quite different from china. Correct me if i m wrong. Was reading tesco did the loyalty cards in china mkt and that didnt close the deal with the retail consumers in china. There were other thgs they did too but apparently they still bled.
Ssg has cost advantage in singapore cos of its size and centralised warehousing. China is a massive market with massive players. China issues aside, the cost of foreign labour is likely to hit ssg in 2016 with the higher foreign worker levies. For r2 foreign worker alone, its a jump from 550 to 650. Though revenue upside still avail in singapore market, considering the eventual govt target 6.9m population (from the press). Informal sources hinted 10m. If 10m, ssg revenues will fly (almost).
Your views? Just my thoughts. Correct me if i m wrong.
Vested in tiny numbers. Wanted to attend their agm but another list co also same time n date. Hope ssg had some vision on their china plans.
Agree that China is difficult 20 years ago and 20 years later... though for vastly different reasons in different dynamics...so many failed ventures.. SSG has to thread slowly and so far IIRC they just doing "management" which is a good starting step that is low cost to extract out if needed.
That said I think the results is better than expected as I was expecting the counter to be around 70ish till Yishun starts. Wonder how much does Tampines really contributed cause I don't think the crowd is huge... or maybe I should go during saturdays
