Fistein
08-13

$Sheng Siong(OV8.SI)$  $3.8 Target Price.

 Most investors spend too much time thinking about when to buy and when to sell.

But what if selling was not an option?

Suppose the Singapore market closed tomorrow and stayed shut for the next 10 years. Which businesses would you still be happy to own?

Warren Buffett once said investors should buy businesses they are happy to own for years, not days.

The one Singapore that pass the test is as follows:

Sheng Siong (SGX: OV8) – The Defensive Consumer Business

Why I'd Hold It for 10 Years

There are retailers who do not have to reinvent themselves to continue growing.

In hard times, people are more careful about their expenses, and that is what distinguishes Sheng Siong from other players.

Sheng Siong has been doing one thing for years successfully. This is a supermarket chain which makes money due to selling the essentials at a reasonable price.

In FY 2025, revenue increased by 9.9% to S$1.57 billion. The growth was fueled by the opening of new stores.

Net profit increased by 8.5% to S$149.2 million.

Gross margin reached 31.3%.

The board declared a dividend of S$0.07 per share, representing a payout ratio of 70.4%.

With such successful performance, Sheng Siong proved that there is no need to reinvent yourself to continue growing in your own area of expertise. 

5 Stocks I’d Hold Even if the Market Closed for a Decade

Imagine you could not sell a stock for the next 10 years. Which businesses would you be happy to own? These five Singapore stocks pass that test.
5 Stocks I’d Hold Even if the Market Closed for a Decade

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Comment（3）

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  • DIAMOND009
    ·08-13
    Been holding a while — the dividend and cash flow are why I keep adding. 10 years out, this kind of boring compounder is gold
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  • wigglyz
    ·08-13
    31.3% gross margin is nice, but if the market shut for 10 years, is 3.8% enough without stronger same-store growth?
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  • Poohfessor
    ·08-14
    This is like DBS 20 years ago.
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