Hidden value: Why SGX consumer stocks deserve a closer look
Fund money is quietly moving from the consumer names everyone knows to the ones they have overlooked
In March 2025, Singaporean coffee shop operator Kimly made two acquisitions of coffee shops in HDB estates, each with an additional rental flat. These deals totaled S$24.2 million, a relatively minor development compared to the company's overall portfolio. Kimly operates over 90 outlets throughout HDB estates, holding an estimated 9 percent of Singapore's coffee shop market.
The company's property and rental revenue from these investments has grown by over 40 percent in the last six months, reaching S$5.1 million. Meanwhile, the Singapore Exchange (SGX) consumer staples sector has seen modest returns, with most other major players experiencing slight declines.
Despite the market's focus on artificial intelligence, Singapore's everyday consumer stocks have remained steady. Notably, Food Empire has struggled, with institutions net-sellers withdrawing S$35.6 million this year. Meanwhile, Food Empire has put S$16.1 million into DFI Retail, which has returned 1 percent year-to-date, and S$10.1 million into Sheng Siong, which has seen a more positive outcome with an 11.4 percent return.
Sheng Siong's success is attributed to new store openings, higher margins, and the impact of government vouchers on consumer spending. However, the shares have become expensive, trading at around 28 times earnings. Some analysts argue that the current valuation overstates the company's future earnings potential, particularly given recent geopolitical risks related to its Russian operations.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
