Why did the Sheng Siong share price drop today?

The drop followed the Sheng Siong OCBC downgrade to Hold. OCBC cited a valuation premium, noting forward P/E of 24.8 times versus a 19.6 times historical average. The market reacted by repricing the stock lower as investors waited for clearer growth signals and margin visibility ahead of the March 2 results.

Is SGX OV8 stock expensive after the move?

On forward P/E, it trades at 24.8 times against a 19.6 times historical average, which implies a valuation premium. Trailing P/E is 28.4 times and price to book is 7.4 times. Solid returns and cash generation support the case, but sustained earnings growth is needed to justify these multiples.

What should investors watch in the March 2 results?

Focus on like for like sales, gross margin stability in fresh, store pipeline updates, and commentary on voucher driven spending. Cash flow strength, capex plans, and any guidance on China operations also matter. These details will indicate if the valuation premium can hold after the Sheng Siong OCBC downgrade.

Do government vouchers meaningfully support earnings?

Voucher schemes can lift grocery traffic and basket sizes, especially for essential goods. The benefit is supportive but may fade as allocations normalise. Management’s guidance on spending mix and frequency will show how much of the uplift is sustainable beyond vouchers and promotions in Singapore’s competitive supermarket landscape.

Is the post downgrade dip a buying opportunity?

It can be, depending on risk tolerance. The business is defensive with strong returns and cash flow. However, the valuation premium is elevated. Some investors may wait for March 2 results for confirmation, while others may scale in gradually. Set clear stop levels and reassess after management’s outlook.

Global Market Insights

OV8.SI Stock Today: February 13 — OCBC Downgrade Knocks Shares 4.2%

ByDanny Kontos February 13, 2026February 13, 2026

Sheng Siong OCBC downgrade moved the Singapore supermarket operator into focus after shares slipped 4.2% on the SGX. OCBC shifted its call to Hold, citing a valuation premium, with forward P/E at 24.8 times versus a 19.6 times historical average. While earnings remain defensive, investors want proof of growth beyond voucher support and steady essential-goods demand. We break down the reaction, valuations, and what to watch into the March 2 results for OV8.SI.