Sheng Siong Group

[specuvestor]

ah thanks you also included immediate family members guesstimate. In 2025 they also moved up the brackets to $500k-$600k

nice thanks

But how do you manage to get Lim family salary as $23m when total admin expense was $58.5m in 2024? Thanks

under pg46-47 of AR24:

(1) 3 Lim Bros + Daughter (on the BOD) ~ 21.6mil 
(2) Immediate family members (3 sons + 1 wife) ~ 1.5mil (upper est of their range)
(3) Lim family's salary = (1) + (2) = 21.6 + 1.5 ~ 23mil

[Big Toe]

I do not frequent SS as there isnt one near where I stay and there are 3 NTUCs and 1 Giant 1 Hao Mart(larger sized one with fresh food section) within 5mins walk. But when I do visit SS, the staff are usually quite motivated and a lot of times, quite pleasant to talk to. I think one reason could be that they are more fairly compensated as compared to the smaller supermarkets chains. Also there is also something about the culture of boss getting his hands dirty to help out when needed in order to get things done.

In this day and age in SG, getting competent and honest front-line staff is extremely difficult. So kudos to SS for keeping their staff motivated.

[weijian]

OPMIs have sent in over 20+ questions for next week's AGM and so the Q&A is an informative read - on Mgt thoughts about why they continue to spend efforts in China, the RTS opening by early 2027 and strong foreign competitors on the local scene like Scarlett.

There are also several questions on the "large cash pile". Coincidentally on 2nd April 2026, Corporate Monitor released an article on SSG with the title "Sheng Siong Group – Cash: Too Much of it Can Be Bad" that also "criticized" the large cash pile. IMHO, saying SSG has a large cash pile is off the mark because SSG does not have a large cash pile. For a start, having a historical record of a 70% dividend payout ratio and an occasional spending spree to own real estate for its ops, one should not expect a large cash pile. As end FY25, SSG has 435mil of cash (~70% of equity) but due to its retail model - customers pay up at point-of-sales but SSG only pays suppliers much later, it is bound to accrue cash at any point of time on its balance sheet. Matter of fact, the bigger it grows, the more negative working capital and more cash (proportion to equity).

As end FY25, payables is ~263mil and so out of the 435mil cash, 60% actually belongs to its suppliers. Only 40% is effectively belongs to SSG. In the few years leading to Covid-19 (2020), suppliers got paid on avg ~65days but in the last 4 years ending 2025, the time to pay suppliers increased to an average of 79days (with 2025 itself been 84days). So therefore, the increasing cash pile is only a result of its bigger business activities and paying suppliers later and later.

RESPONSE TO QUESTIONS RECEIVED FROM SHAREHOLDERS FOR THE ANNUAL GENERAL MEETING

Q3. Sheng Siong has maintained its dividend payout ratio at 70% since 2017, but its balance sheet is heavy with cash taking up 40% of total assets. Will management consider declaring a special dividend to reward shareholders?

Q4. Can you share about your shareholder return strategy? It seems like it is primarily dividend and capital appreciation, and I’m wondering if you could do more in terms of buybacks, given that your cash pile is quite big.

Q5. May the Board clarify whether it has actively evaluated alternative uses for the Group’s excess cash (which has significantly increased in the past FY), including deployment into higher-yielding short-term instruments, rather than maintaining the majority in fixed deposits as disclosed in the audited financial statements?

https://links.sgx.com/FileOpen/SSG%20-%2...eID=885333

[Big Toe]

The most amusing question I found is this one.

Q10. Does Sheng Siong still intend to pursue its asset-heavy policy of purchasing
real estate for opening new stores? Why not rely on rental instead and keep the
business asset-light? [Note: Sheng Siong spent S$49 million acquiring Jelita
Property Pte Ltd in November 2024 which owns 2 properties – Toa Payoh and
Siglap V]

It is very clear that this shareholder is slightly clueless what he/she/they/them is talking about.
I think all this talk of asset light strategy is PR BS(mostly). Why not be asset light and manpower light
and sit down rent free at Macdonalds to use as office and do drop shipping?

In SS case, it is not a matter of choice. Most units that they operate are owned by HDB/gov and not for sale, period. When there is an opportunity to own/rent a unit with the right attributes at the right price, any sensible operator would grab it. I remember NTUC recycling its assets and selling HDB shops not too long ago. NOt sure if SS was eligible to purchase. My best guess is for the more profitable outlets, there probably is a strict sell and leaseback agreement for X number of years.
DBS/OCBC and singpost did the same, or did I remember wrongly?

[Choon]

The most amusing question I found is this one.

Q10. Does Sheng Siong still intend to pursue its asset-heavy policy of purchasing
real estate for opening new stores? Why not rely on rental instead and keep the
business asset-light? [Note: Sheng Siong spent S$49 million acquiring Jelita
Property Pte Ltd in November 2024 which owns 2 properties – Toa Payoh and
Siglap V]

It is very clear that this shareholder is slightly clueless what he/she/they/them is talking about.
I think all this talk of asset light strategy is PR BS(mostly). Why not be asset light and manpower light
and sit down rent free at Macdonalds to use as office and do drop shipping?

In SS case, it is not a matter of choice. Most units that they operate are owned by HDB/gov and not for sale, period. When there is an opportunity to own/rent a unit with the right attributes at the right price, any sensible operator would grab it. I remember NTUC recycling its assets and selling HDB shops not too long ago. NOt sure if SS was eligible to purchase. My best guess is for the more profitable outlets, there probably is a strict sell and leaseback agreement for X number of years.
DBS/OCBC and singpost did the same, or did I remember wrongly?

By putting in the time and mental effort to draft the question to clarify his/her understanding as a value investor, the shareholder's act is already commendable

[swakoo]

By putting in the time and mental effort to draft the question to clarify his/her understanding as a value investor, the shareholder's act is already commendable

The stupid question is the one that didn't get asked.