Dairy Farm International - CGS-CIMB Research 2022-03-04: Bumpy Road To Recovery

Dairy Farm International - Bumpy Road To Recovery

  • 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

SGX Stock / REIT Search


Trust Bank God Of Fortune Referral Code PGKPSWAE Trust Bank Referral Code 🧧