Finance

FIN355

Equity Securities

Assignment 2 – Group-based Assignment

January 2014

Student Names: Tan Xin Yin, Grace

Lee Yuren Aaron

Student PI Nos.: B1270018

B1173978

Table of Contents

Content Description Page Number

Cover Page 1

Table of Contents 2

Question 1a 3

Question 1b 4 – 5

Question 2 6

Question 3 7

Question 4 8

Question 5 9

Appendix

Question 1

Business Summary

Sheng Siong Group Ltd, is a Singapore investment holding company and one of the largest supermarket chains. The company’s core business is grocery supermarket and supply chain management of its products from sourcing, packaging and to developing its own house brands. It has over 30 outlets located all around the island. The objective of Sheng Siong is to provide a competitive and value over cost for its products by providing both wet and dry shopping options. It provides a vast variety of products at its stores for example assortment of live, fresh and chilled produce. To improve on cost and further give their customers saving on their purchases, the company has around 400 products under its 10 house brands.

Share Performance

Price (SGD): 0.60 52 Week High: 0.74 Currency: SGD

Volume (millions): 0.3 52 Week Low: 0.57

[pic]

Source Reuters Fundamentals

Financial Summary

Sheng Siong Group Ltd revenues have increased 9% to $517 million in 2013. Although there has been an increase in revenue the net income had decreased 12% to $29.6 million in 2013. Hence, this reflects that the revenue increased due to increase in demand for the company’s products and the markets conditions were in their favour in 2013. The lower net income was due to higher Administrative expense of $82.7 million and other operating expenses...