Iggy’s Journal: Maybank Cuts Sheng Siong to Hold and Trims Its Target Price to S$3.12

Sun 11 Oct 2026 | Afternoon

The Numbers

Maybank downgraded Sheng Siong (SGX: OV8) from Buy to Hold and cut its target price to S$3.12 from S$3.22, a cut of 3.1 percent, per a report dated 9 Oct as summarised on SGinvestors.io. Maybank calls the company high quality but says the share price already reflects much of that. Its stated reason is valuation: 28.4 times FY26 earnings and 17.3 times EV/EBIT, against projected net profit growth of 8 percent a year over FY25 to FY28 and a 2.5 percent dividend yield. It trimmed FY26 to FY28 net profit forecasts by 1 to 3 percent and cut its 2028 new store assumption from five to four.

Maybank also expects the tailwinds to fade. The S$500 CDC voucher tranche was brought forward from January 2027 to June 2026, which helps FY26 and makes FY27 a harder comparison. Supermarket growth has already slowed to low single digits, the gain from Giant and Cold Storage closures appears largely used up, and Cold Storage’s new owner is expanding Cold Storage On The Go, targeting more than 100 outlets. Every figure above is Maybank’s forecast or view, not company guidance.

On payments already made, Sheng Siong’s last two were a 3.80-cent final and a 3.75-cent interim, S$0.0755 in total per the SGX notices. At S$3.20, the 2 Oct delayed quote I have, that is 2.36 percent, under the 3.2 percent minimum I track. I have no later price.

My Personal Take

The word downgrade made me expect a problem with the business, so I read for what changed. The profit forecasts moved 1 to 3 percent and the target price moved 3.1 percent, which are similar in size, and the reason given is the price paid for the earnings. I cannot check Maybank’s forecasts, so I am treating this as one broker’s statement about price. The dividend payments are the part I can check.
$Sheng Siong(OV8.SI)$
Not financial advice. Iggy’s Forensic Compliance Standards apply.