$Sheng Siong(OV8.SI)$  $3.60 Target Price.

About Sheng Siong (OV8)

Sheng Siong Group is one of Singapore's largest supermarket chains, operating over 88 outlets primarily in residential heartland locations, alongside stores in Kunming, China and its Sheng Siong Online grocery platform.

As a consumer staples play, the group offers a defensive earnings profile anchored by consistent demand for daily essentials. 

Fundamentals 

Sheng Siong reported 1Q FY2026 revenue of S$452.8M, up 12.4% YoY, with net profit rising 12.6% to S$43.4M, driven mainly by the twelve new stores opened during FY2025 alongside stronger festive spending over Lunar New Year and Hari Raya Puasa.

Comparable same-store revenue in Singapore grew 3.5%, indicating the expansion story is being supported by underlying organic demand rather than new floor space alone

 Gross profit rose 15.0% to S$140.3M, with gross margin improving 0.7% to 31.0% from 30.3%, supported by continued refinement of the sales mix to offset rising operating costs. 

Management is responding to the environment by diversifying its supplier base to strengthen supply chain resilience and investing in automation to manage rising labour costs.

Three new stores have been secured, with two targeted to open in 2Q FY2026 and one in 3Q FY2026, extending the runway on the expansion story.

Technical 

Sheng Siong has been in a firm longer-term uptrend since late 2024, whereby short-term trend based on 20d MA has been fluctuating between heading up, down and sideways. Currently, 20d MA looks to be inclining after consolidating for one month from June. 

Note that three  Bullish signals are still playing out, affirming the broader uptrend structure.

Immediate support appears to be around $3.20, while resistance appears to be around $3.40.

As long as price continues to hold firmly above $3.20, immediate potential upside target $3.60 can be achieved.