Singapore’s defensive supermarket giant has spent 2025 doing something supermarkets are not supposed to do: excite the market. Sheng Siong Group Ltd (SGX:OV8) is trading near its 52‑week high, analysts are debating whether the “voucher tailwind” is already priced in, and the stock has landed on the Straits Times Index (STI) reserve list—often a prelude (not a promise) to wider index attention. [1]
Below is a detailed roundup of the most recent news, forecasts, and analyst commentary available as of 13 December 2025, plus the company fundamentals that matter for anyone tracking the next move in Sheng Siong stock.
Sheng Siong stock snapshot (as of Dec 13, 2025)
Sheng Siong shares were indicated around S$2.61, with a 52‑week range of S$1.57 to S$2.73—a big run for a grocery name that’s usually prized for stability, not adrenaline. Investing.com also lists market cap around S$3.92 billion, dividend yield around 2.45%, and notes the next earnings report timing as late February 2026 (market calendars typically label this as projected). [2]
One quick way to interpret today’s setup:
- Price is high (near the top of the 1‑year range). [3]
- Analyst target prices cluster around current levels, implying limited upside unless execution or the macro tailwind surprises positively. [4]
- Fundamentals are still solid (profits rising, margins steady-to-improving, strong cash). [5]
What’s the latest news on Sheng Siong stock this week?
1) Sheng Siong enters the STI reserve list (effective Dec 22 review changes)
In the December 2025 STI quarterly review, FTSE Russell announced no change to STI constituents, but Sheng Siong Group was added to the STI reserve list, with changes effective 22 December 2025. [6]
A quick refresher on what this means (and what it doesn’t):
- The STI reserve list is made up of high‑ranking non‑constituents by market cap; these can replace an STI constituent that becomes ineligible before the next review due to corporate actions. [7]
- Reserve list ≠ automatic inclusion, but it can increase the stock’s visibility and “watchlist status” for index-linked flows. [8]
The Business Times also reported Sheng Siong shares closed around S$2.62 on the day of the news. [9]
2) DBS downgrades Sheng Siong to HOLD as “positives priced in”
The most market-moving piece of near-term commentary is from DBS, which downgraded Sheng Siong to HOLD with an unchanged target price of S$2.60, arguing the share price had rallied above that target and that the SG60 voucher demand boost is largely priced in. [10]
DBS frames the supermarket sector backdrop as strong into 2026, but warns that valuation and expectations are now doing a lot of the heavy lifting. [11]
The fundamental engine: stores, sales, margins (3Q FY2025)
Sheng Siong’s most recent business update for 3Q FY2025 (ended 30 Sep 2025) paints a picture that’s simple but powerful: more stores + improving same-store sales + resilient margins.
Key reported highlights:
- Net profit:S$43.8 million, up 12.0% YoY. [12]
- Revenue:S$415.5 million, up 14.4% YoY, driven by new store openings and improved comparable same-store sales. [13]
- Gross margin: improved to 31.5% (a modest rise, but notable given cost pressures). [14]
- Store count: the company cited 90 total stores vs 79 a year earlier, while broker work also breaks this down as 84 stores in Singapore and 6 in China as of 30 Sep 2025. [15]
- Cash: Sheng Siong ended the quarter with S$393.7 million in cash and cash equivalents—serious financial flexibility for expansion, automation, and dividends. [16]
Management’s “looking forward” tone was essentially: grocery demand resilient, voucher-driven support ongoing, but competition remains intense and could pressure margins. [17]
The big macro tailwind: SG60 vouchers (why analysts care)
If you’ve been reading Singapore consumer research in 2025, you’ve seen the phrase “voucher tailwind” about 10,000 times. Here’s the non-mystical reason it matters:
The SG60 Vouchers program provides S$600 to all Singapore citizens aged 21+ in 2025, and S$800 to seniors aged 60+ (in 2025). Importantly for supermarket operators, half of the SG60 vouchers are allocated for spending at participating supermarkets, and vouchers expire 31 Dec 2026. [18]
DBS’s numbers: strong 2026, tougher “base effect” after
DBS estimates:
- 2025 supermarket industry growth supported by SG60 vouchers (DBS cites ~4% YoY for 2025). [19]
- 2026 could be a standout year, with an estimated ~S$500 million annualised uplift in supermarket sales, pushing industry growth toward ~6% YoY and lifting total supermarket sales in its framework. [20]
- DBS also flags that 2027 could get harder because the voucher stimulus disappears and because of broader retail leakage dynamics in Singapore retail (DBS discusses this in its sector framing). [21]
The market implication is classic: a real demand boost exists, but stocks don’t price “today”; they price the expected future, and the debate is whether that future is already reflected in OV8’s multiple. [22]
Analyst forecasts and target prices (as of Dec 13, 2025)
The consensus picture: targets tight around current price
As of 13 Dec 2025, SGinvestors’ compilation of broker targets (from the past ~3 months) shows:
- Range:S$2.50 to S$2.77
- Median:S$2.575 (about 1.3% downside from ~S$2.61)
- Average:S$2.615 (about 0.2% upside) [23]
Investing.com’s aggregated view also places the average target around ~S$2.51, again implying modest downside from current levels unless the story improves further. [24]
So the consensus takeaway is not subtle: the market has already rerated Sheng Siong meaningfully, and analysts want additional proof points (store rollout, margins, voucher conversion) to justify another leg up. [25]
What the bulls are betting on (and why they’re still bullish)
Even with the stock near its highs, multiple houses remain constructive—especially those focused on store network expansion and the long runway implied by automation and distribution capacity.
Maybank Research (dated Nov 3, excerpted on SGinvestors) highlights:
- Following 11 store openings in Singapore in 2025, Maybank expects 7 additional stores in 2026 and raised 2025–27 earnings forecasts by 6–7%, lifting its target price to S$2.55 and reiterating BUY. [26]
RHB Research (dated Nov 4, excerpted) points to:
- 3Q revenue/earnings growth helped by new stores and ~4% same-store sales growth, with a longer-term view that the Sungei Kadut facility (distribution) can support 120+ stores eventually; RHB raised target price to S$2.72 and kept BUY. [27]
OCBC Investment Research (dated Nov 3, excerpted) argues:
- Sheng Siong is “expanding footprint,” with 84 Singapore stores + 6 China stores as of 30 Sep, and sees it benefiting from value-seeking behavior and household support measures; OCBC lifted fair value to S$2.77. [28]
Phillip Securities (dated Nov 3, excerpted) emphasizes:
- 2025’s store openings are the biggest since 2018, supporting FY26 revenue growth; it maintains ACCUMULATE and raised TP to S$2.55, while also noting cost headwinds like wage pressure and declining finance income as rates fall. [29]
What the “priced in” camp is worried about
DBS essentially represents the “great company, expensive stock” camp right now:
- Downgrade to HOLD, TP S$2.60
- FY2026 estimates already reflect SG60 upside
- Valuation: trading around ~24x FY2026 earnings in its framing [30]
This isn’t a thesis that Sheng Siong is broken—it’s a thesis that Sheng Siong is too loved at the current price, and that future beats need to be meaningful, not just “fine.” [31]
Dividend outlook: steady, visible, and part of the “defensive” appeal
Sheng Siong continues to behave like a classic Singapore defensive compounder: pay a regular dividend, keep a strong cash buffer, expand steadily.
From SGX filings, the company declared an interim dividend of S$0.032 per share for FY2025 with:
- Ex-date: 14 Aug 2025
- Record date: 15 Aug 2025
- Pay date: 29 Aug 2025 [32]
With dividend yield around ~2.45% on current pricing (per Investing.com’s displayed figure), yield alone isn’t the whole story—but it does help explain why the stock is often treated as a “sleep-well” anchor during uncertain growth cycles. [33]
The infrastructure angle: Sungei Kadut land lease and the long game
A less flashy but strategically important thread is Sheng Siong’s logistics and capacity expansion.
In an SGX announcement dated 28 Aug 2025, Sheng Siong said its wholly-owned subsidiary received a letter of offer from JTC to lease land at Sungei Kadut Street 1, measuring 61,297 square metres, with a 33-year lease commencing 18 Dec 2025. [34]
Why this matters to the equity story:
- The company’s growth isn’t just about opening outlets; it’s about building a supply chain that can service a larger store base without losing margin discipline.
- Broker research explicitly ties the Sungei Kadut facility concept to servicing 120+ stores longer term and to greater automation. [35]
In other words: the “boring grocer” is quietly building the kind of backbone that lets boring become scalable.
Risks: what could derail the story from here?
Even defensive stocks have dragons. The ones most frequently cited in current commentary are:
1) Margin pressure from competition and costs
Management explicitly warns that competition remains intense and could pressure margins, while also detailing cost increases tied to staffing, bonuses, and depreciation from new leases. [36]
2) Wage inflation and shrinking grants
The company notes lower government grants (e.g., lower receipts under wage credit schemes) in its 3Q commentary, and brokers have highlighted wage and staff costs as a pressure point. [37]
3) “High base” after vouchers expire
DBS is already looking beyond the 2026 boost to the possibility of a tougher comparison year when the SG60 support fades. [38]
4) Valuation risk
When targets sit around the current share price, the stock becomes more sensitive to any disappointment—because the market has less patience when it has already paid up. [39]
Key dates and what to watch next
- Dec 22, 2025: STI quarterly review changes take effect; Sheng Siong is on the STI reserve list from this review. [40]
- Dec 18, 2025: Start date of the 33-year JTC land lease (per letter of offer). [41]
- Late Feb 2026: Next earnings window is commonly shown as projected around Feb 24–25, 2026 by market calendars (treat as indicative until the company confirms). [42]
Bottom line: what Sheng Siong stock looks like on Dec 13, 2025
Sheng Siong (SGX:OV8) is sitting at an interesting crossroads:
- Operationally, it’s executing well—profit up, sales up, margins stable-to-better, cash strong, and a store expansion story that looks unusually ambitious for Singapore grocery retail. [43]
- Macro-wise, SG60 vouchers provide a tangible and time-bounded tailwind through end‑2026, with analysts expecting 2026 to be unusually strong for essential retail. [44]
- Market-wise, the stock is priced like investors already believe all of that—hence the growing number of notes that effectively translate to: “We like the business… but now we need a new reason.” [45]
That’s not a bad place for a company to be. It’s just a place where the next move is more likely to come from execution surprises (store rollout pace, margins, voucher conversion) than from the market suddenly “discovering” what Sheng Siong is.
References
1. www.investing.com, 2. www.investing.com, 3. www.investing.com, 4. sginvestors.io, 5. corporate.shengsiong.com.sg, 6. www.lseg.com, 7. www.businesstimes.com.sg, 8. www.businesstimes.com.sg, 9. www.businesstimes.com.sg, 10. www.dbs.com.sg, 11. www.dbs.com.sg, 12. corporate.shengsiong.com.sg, 13. corporate.shengsiong.com.sg, 14. corporate.shengsiong.com.sg, 15. corporate.shengsiong.com.sg, 16. corporate.shengsiong.com.sg, 17. corporate.shengsiong.com.sg, 18. www.sg60.gov.sg, 19. www.dbs.com.sg, 20. www.dbs.com.sg, 21. www.dbsvickers.com, 22. www.dbs.com.sg, 23. sginvestors.io, 24. www.investing.com, 25. sginvestors.io, 26. sginvestors.io, 27. sginvestors.io, 28. sginvestors.io, 29. sginvestors.io, 30. www.dbs.com.sg, 31. www.dbs.com.sg, 32. links.sgx.com, 33. www.investing.com, 34. links.sgx.com, 35. sginvestors.io, 36. corporate.shengsiong.com.sg, 37. corporate.shengsiong.com.sg, 38. www.dbsvickers.com, 39. sginvestors.io, 40. www.lseg.com, 41. links.sgx.com, 42. www.investing.com, 43. corporate.shengsiong.com.sg, 44. www.sg60.gov.sg, 45. sginvestors.io
