(28-05-2016, 09:46 PM)CityFarmer Wrote: [ -> ]Another JV with Kunming LuChen?
Xpress in China supermarket JV with Sheng Siong and Kunming LuChen
SINGAPORE (May 27): Xpress Holdings says iSmart Investments (ISI), a wholly owned subsidiary of the company, has entered into a joint venture agreement with Sheng Siong Group and Kunming LuChen Group Co. to operate supermarkets in China.
The Joint Venture company will have a registered capital of US$10 million ($13.7 million). Sheng Siong Group will subscribe to a 60% stake for US$6 million; Kunming LuChen will subscribe to a 30% stake for US$3 million; while ISI will subscribe to a 10% stake for US$1 million.
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http://www.theedgemarkets.com/sg/article...ing-luchen
Xpress Holdings seem to have a checkered past.
http://www.channelnewsasia.com/news/busi...63100.html
I can understand Sheng Siong partnering Luchen, but Xpress Holdings' core business is very different from supermarkets operations.
I assume Xpress Holdings just provide the capital as a 'sleeping' partner while Sheng Siong provides the operational expertise and Luchen provides the local know-out.....
(29-05-2016, 04:15 PM)Dividend Knight Wrote: [ -> ]Xpress Holdings seem to have a checkered past.
http://www.channelnewsasia.com/news/busi...63100.html
I can understand Sheng Siong partnering Luchen, but Xpress Holdings' core business is very different from supermarkets operations.
I assume Xpress Holdings just provide the capital as a 'sleeping' partner while Sheng Siong provides the operational expertise and Luchen provides the local know-out.....
The SGX warnings, were issued on former executive chairman and CEO Fong Kah Kuen. The current management is a new team.
My guess is Mr Tan Ling San retired and pulled out. Xpress holdings is 31% owned by Ma Wei Dong who is also chairman of Kunming Luchen Group.
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(29-05-2016, 04:15 PM)Dividend Knight Wrote: [ -> ] (28-05-2016, 09:46 PM)CityFarmer Wrote: [ -> ]Another JV with Kunming LuChen?
Xpress in China supermarket JV with Sheng Siong and Kunming LuChen
SINGAPORE (May 27): Xpress Holdings says iSmart Investments (ISI), a wholly owned subsidiary of the company, has entered into a joint venture agreement with Sheng Siong Group and Kunming LuChen Group Co. to operate supermarkets in China.
The Joint Venture company will have a registered capital of US$10 million ($13.7 million). Sheng Siong Group will subscribe to a 60% stake for US$6 million; Kunming LuChen will subscribe to a 30% stake for US$3 million; while ISI will subscribe to a 10% stake for US$1 million.
...
http://www.theedgemarkets.com/sg/article...ing-luchen
Xpress Holdings seem to have a checkered past.
http://www.channelnewsasia.com/news/busi...63100.html
I can understand Sheng Siong partnering Luchen, but Xpress Holdings' core business is very different from supermarkets operations.
I assume Xpress Holdings just provide the capital as a 'sleeping' partner while Sheng Siong provides the operational expertise and Luchen provides the local know-out.....
I think this is the same JV that was previously announced by Sheng Siong. Just that the Executive Director, Tan Ling San's, 10% stake has been transferred to Xpress Holdings. If this is a separate JV, there should have been some announcement by Sheng Siong.
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(29-05-2016, 11:52 PM)holymage Wrote: [ -> ]My guess is Mr Tan Ling San retired and pulled out. Xpress holdings is 31% owned by Ma Wei Dong who is also chairman of Kunming Luchen Group.
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It is very likely the reason. Anyway, both are subsidiaries of Sheng Siong, but with slightly different shareholders.
Sheng Siong growth story is continuing. Revenue growth of about 5%, is above the sector growth rate, Sheng Siong is enlarging its market share, albeit slowly.
(vested)
Sheng Siong posts 11.3% rise in 2Q earnings from new stores
SINGAPORE (July 26): Sheng Siong has posted an 11.3% increase in earnings to $15.2 million for 2QFY2016.
For the quarter to June, revenue grew 5.5% to $188.8 million, on the back of the maiden revenue contribution from its new stores at Circuit Road, Upper Boon Keng Road and Fernvale. For the half year period, earnings rose 14.1% to $31.6 million as revenue rose 5.3% to $397.3 million.
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http://www.theedgemarkets.com.sg/sg/arti...new-stores
The analyst might not fully understood the grocery e-commerce status in Singapore. Redmart still bleeding in Singapore, with its high-logistic-cost. Redmart business model, might not work in Singapore due to its unique population distribution. AmazonFresh isn't available in Singapore.
Sheng Siong is facing more e-commerce threat in its upcoming China venture.
(vested)
Sheng Siong’s threat is edging nearer than you think
SINGAPORE (Sept 16): UOB Kay Hian is initiating coverage on Sheng Group (SSG) with a “hold” and target price of $1.13 given that the stock price is reflecting all the positive views at current levels. Long term though, SSG’s will face higher competition from e-commerce players and lack of domestic growth opportunities.
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http://www.theedgemarkets.com.sg/sg/arti...-you-think