Dairy Farm International - Light At The End Of The Tunnel?
- Dairy Farm International (SGX:D01) reported a weak set of business updates with profits continuing to be impacted by the ongoing pandemic and losses by key associate Yonghui.
- We expect the tough operating environment to persist in 4Q21F, but see light at the end of the tunnel with potential HK-China border reopening in 1H22F.
- We believe more visibility on the HK-China border reopening is needed for sustained multiples re-rating.
- Maintain HOLD rating on Dairy Farm International with a lower target price of US$3.50, still based on 18.5x CY22F P/E (1 standard deviation below Dairy Farm International’s 5-year historical mean).
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
ONG Khang Chuen CFA CGS-CIMB Research | Kenneth TAN CGS-CIMB Research | https://www.cgs-cimb.com 2021-11-12 2021-11-12
Read also CGS-CIMB's most recent report:
2022-07-29 DFI Retail Group - More Time Needed.
Previous report by CGS-CIMB:
2022-06-24 DFI Retail Group - FY22F A Year Of Investment.