Why did the Sheng Siong share price drop today?

OCBC downgraded the stock to Hold, citing a premium 24.8x forward P/E versus a 19.6x historical average after a strong rally. The cut triggered profit taking and a 4.2% one-day move. Investors now want clarity on FY2025 earnings, margins, and store growth to justify the higher multiple.

Is the Sheng Siong valuation expensive now?

On trailing data, P/E is about 28.4x with P/B near 7.4x and dividend yield around 2.34%. OCBC also flagged a 24.8x forward P/E versus a 19.6x average. The premium looks fair only if earnings growth, margins, and cash returns stay strong or improve in FY2025.

What should investors watch in the upcoming results?

Key items include like-for-like sales, new store wins, China performance, gross margins, operating costs, and dividend guidance. Clear signals on expansion and cost control can support sentiment. Any weakness in margins or growth could pressure the Sheng Siong share price despite its strong balance sheet.

Is Sheng Siong still a defensive play after the rally?

Yes, groceries are non-discretionary, and Sheng Siong’s cash flow is resilient. However, after a big run-up, the defence is now priced in. The next leg depends on earnings delivery. Strong execution can defend the premium, while softer margins could drive a valuation reset.

Should I buy after the 4.2% drop?

Consider waiting for FY2025 results on 2 March or accumulate in small tranches near support zones around S$2.62 to S$2.68. Align entries with risk tolerance and time horizon. A clearer margin outlook and payout guidance can improve conviction in the Sheng Siong share price.

Global Market Insights

OV8.SI Stock Today: February 12 – 4.2% Slide After OCBC Downgrade

ByDanny Kontos February 12, 2026February 12, 2026

The Sheng Siong share price fell 4.2% today after OCBC cut its rating to Hold, flagging stretched valuation at 24.8x forward P/E versus a 19.6x historical average. We break down what this means for Singapore investors and where the stock could go next. Sheng Siong (OV8.SI) has rallied about 60% into 2025, so profit taking is natural. With FY2025 results due on 2 March, attention now turns to earnings quality, margins, and cash returns.