Sheng Siong Shareholders Seek Clarity on Capital Allocation, M&A Approach

Shareholders of Sheng Siong have raised inquiries regarding the company's capital allocation and M&A strategy, particularly with its significant cash reserves of S$324 million.

Questions revolve around the company's priorities for capital allocation and its stance on potential mergers and acquisitions.

While open to M&A opportunities, the company emphasizes a careful analysis of benefits and risks before pursuing such endeavors, focusing more on organic growth and operational improvements.

Shareholders also inquire about the sustainability of Sheng Siong's growing profit margin, to which the company attributes to continuous efforts to improve sales mix, supply chain efficiency, and address rising costs.

Sheng Siong highlights its competitive advantages in service, pricing, and quality, along with supply chain diversification and operational streamlining as key factors that differentiate it from competitors and contribute to efficiency and cost-savings for customers and shareholders.