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Then the next thing is that big hard to grow bigger. Small can grow faster. Today's buying interest not bad. The near term key catalysts for growth are quite clearly:
1. New outlets including the one at tampines
2. Expected higher population count 6.2 to 6.9 m (suggested by cf n is a reasonable assumption. Afaik, dr liew thai ker (ex hdb planner) suggested that 6.9 m is conservative and 10 m is achievable during a dbs conference sometime back. Iirc. Attendees prob heard his statement loud and clear. )
3. Depreciation of the rm in 2015 vs 2014. Not sure how significant is this. Knowing that sg is dependent on msia imports, this is bound to have some extent of positive profit benefit.
4. Wider range of pte label (as mentioned from a jp morgan report which someone shared.) it is a gd opportunity to widen margins.
5. Rental revenues for tampines likely to be recognised in Fy2016. That should give a good boost to eps.
Longer term catalyst which are uncertain at this point in term:
1. Govt stance on migration policies, which will have a material impact on population trend and has obvious effects on the rate of revenue growth.
2. Possible 10m population being "achievable" and this is very uncertain. But, should this arise, the impact on ssg will be substantial.
3. Foreign labour policy. Higher foreign worker levy is likely to add pressure on net margins, and is a constant risk. Doubt that any levy changes will be so substantial as to make a dent on net margins in long term.
4. Performance of the China JV. A potential game changer, but I think Mr Mkt don't think so given the recent sell down.
Personally, its a "cheaper to enter" defensive stock vs rmg. Rmg is strong but entry cost very high. In times of recession, a safe haven for money. What I like about rmg is that it is quite "impossible" for another competitor to build a hospital next to their hq n start competing. In fact, the regulatory barriers made it a difficult market to enter. Relative market power to set prices is a strong attraction of rmg though base operating costs are astronomical too. Compared to ssg, the power to price is limited, but enhance cost efficiency is likely. But ssg has volume. Both are good counters.
Philip fisher once said that the best time to sell is never. To quote what curious party would say, there is earnings visibility.
PS: My forecast as attached for everyone to critic. Let me know if my forecast is sane.