Sheng Siong's Growth Could Moderate in Subsequent Quarters — Market Talk

Sheng Siong's growth is likely to moderate in subsequent quarters, says DBS Group Research's Zheng Feng Chee in a note. The Singapore supermarket retailer's 1Q results were supported by a record new-store openings, government vouchers and the later timing of the Lunar New Year, he says, noting this is likely to be the peak for the rest of the year. Still, the company is expected to deliver solid same-store sales growth in 2Q, he says, citing a low base effect. "We remain optimistic that the company is on track to deliver our [2026] forecast of a respectable 7% [on-year] earnings growth," he says. DBS retains its hold rating and is reviewing its S$2.60 target price. Shares add 0.7% to S$3.01. (megan.cheah@wsj.com)