Dairy Farm International - Bumpy Road To Recovery
DAIRY FARM INT'L HOLDINGS LTD (SGX:D01)
- Dairy Farm (SGX:D01)'s FY21 core net profit of US$105m (-62% y-o-y) was in line with our expectations but below consensus. Core operating profit improved y-o-y, but Yonghui dragged.
- Worsening wave of COVID-19 infections in Hongkong delayed recovery expectations, with reopening of the Hongkong-Mainland China border pushed back further.
- Price investment campaigns, e-commerce initiatives could also slow Dairy Farm's margin improvements.
- Maintain HOLD call on Dairy Farm. We cut our core earnings per share (EPS) forecasts for FY22-23F by 24.2-27.5% on the back of the slower pace of sales recovery for Health & Beauty segment, lower margin assumptions and higher Yonghui losses. Our target price for Dairy Farm is lowered to US$2.90.
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 2022-03-04
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.
Price targets by other brokers at Dairy Farm Target Prices.
Listing of research reports at Dairy Farm Analyst Reports.
Relevant links:
Dairy Farm Share Price History,
Dairy Farm Announcements,
Dairy Farm Dividends & Corporate Actions,
Dairy Farm News Articles
