Singaporean supermarket giant Sheng Siong Group Ltd (OV8.SI) continues on a growth trajectory, reporting a 2.6% increase in net profit to S$137.5 million for the financial year 2024. The company's revenue also saw a healthy 4.5% rise to S$1.43 billion, fueled by strategic new store openings both domestically and in Kunming, China, alongside improved performance in existing stores.

Demonstrating confidence in its performance, Sheng Siong has proposed a final dividend of 3.20 cents per share, bringing the total dividend for the year to 6.40 cents, an increase from the previous year. This positive financial performance is underpinned by strong cash flow from operations, which saw a significant 23.7% year-on-year increase.

Looking ahead, Sheng Siong is actively expanding its footprint. Having already opened eight new stores in Singapore and its sixth store in China since the start of FY2024, the company is also awaiting the results of tenders for an additional eight potential locations in Singapore.

To further enhance customer convenience, Sheng Siong has recently partnered with Deliveroo, bringing its wide range of groceries to online shoppers with the promise of quick delivery. This initiative reflects the company's commitment to adapting to evolving consumer preferences.

While the supermarket sector in Singapore is projected to maintain a positive trend, Sheng Siong acknowledges the broader global economic uncertainties and geopolitical tensions that could impact supply chains. As such, the company adopts a cautiously optimistic stance, focusing on strengthening its core business and diversifying its supply network to navigate potential challenges.

The market appears to view Sheng Siong favorably, with the stock price showing gains over the past year and analysts generally recommending a "Buy." This positive sentiment reflects the company's solid financial performance and ongoing expansion efforts in a resilient sector.

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