Sheng Siong Group's stock (OV8.SI) is soaring 3.63% in Thursday's intraday trading, reaching S$2.01 per share. The surge comes on the heels of a positive outlook report from RHB Research, highlighting the supermarket chain's successful expansion strategy in Singapore.

According to RHB Research analyst Alfie Yeo, Sheng Siong's future looks bright due to its aggressive outlet expansion plans. The company has already opened two new outlets in Q1 and is on track to open six more by Q3, with an additional four locations pending tender results. This expansion rate has exceeded RHB's initial assumptions, prompting the research firm to revise its earnings estimates upward.

In light of the promising growth trajectory, RHB has raised its earnings estimates for Sheng Siong by 4% for 2025 and 6% each for 2026 and 2027. Consequently, the firm has also increased its target price for the stock from S$1.98 to S$2.12, while maintaining a "buy" rating. The market's positive reaction to this news underscores investor confidence in Sheng Siong's growth strategy and its potential to capitalize on Singapore's retail market opportunities.