CIMB in a Feb 7 research report says: "Sheng Siong burst onto the local grocery retailing scene proper after 2000. Recessionary environments that supported the demand for budget items plus low store rentals allowed Sheng Siong to flourish.

"High operating margins and ROAs of 5.6% and 16% respectively are here to stay, we believe, over the next three years. This places Sheng Siong at the top end of its local and regional peers. Management has committed to 90% payouts for FY2011/2012. This would translate to $26.8 million and $32.0 million respectively, representing 1.9 cents and 2.3 cents per share.

"At current price, dividend yield is about 4%. We apply a 20% discount to DFI's 22x CY13 P/E to arrive at 18x CY13 P/E for Sheng Siong (8% earnings CAGR vs. 12% for DFI). This produces a target price of 51 cents. OUTPERFORM."