Iggy’s Journal: Sheng Siong Is Down About 10%. The Dividend Is 2.6% and the Warehouse Costs S$520M

Mon 12 Oct 2026 | Afternoon

The Numbers

Sheng Siong’s profit rose 11.9%, but its operating cash flow fell to S$54.8 million. The company attributes the decline to bonuses and earlier vendor payments.

The shares are about 10% below their S$3.20 price on 2 October. The trailing dividend yield is 2.62%, which is 58 basis points under my 3.2% Forensic Floor and 208 basis points under my 4.7% hurdle. The new warehouse costs S$520 million.

My Personal Take

A single cash flow figure cannot show whether earlier vendor payments are a one-off timing difference or a new payment schedule. Whether payables rebuild is the open question, and only later periods can answer it. Until then I read the 11.9% profit growth and the S$54.8 million of operating cash flow side by side and treat neither as the whole picture. In the episode I go through how I test the current dividend against that cash flow, and why the S$520 million warehouse makes future increases harder to judge.

$Sheng Siong(OV8.SG) 

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Not financial advice. Iggy’s Forensic Compliance Standards apply.