- We have upgraded DFI Retail Group (SGX:D01) to a BUY from HOLD with a P/E-based target price of US$3.90 implying 19% upside from current levels on a better 2023 outlook. We apply our 2023 EPS to a target P/E multiple of 30x, which is in line with the company’s past 5-year average .
- - Read this at SGinvestors.io -
- DFI Retail is due to report its 2022 earnings on 2 Mar 23. (see SGX companies earnings calendar)
Normalising in a post-COVID-19 world.
- - Read this at SGinvestors.io -
- In 2022, the Chinese economy materially slowed from 2Q, mainly due to the government’s zero-COVID strategy that disrupted logistics, retail sales and catering, all of which negatively affected DFI in its key markets of Hong Kong and China. However, the easing of COVID-19 restrictions in China from Dec 22 has seen increased economic activity as well as domestic and regional travel.
- As 2023 progresses, we expect this to translate to better earnings momentum. Importantly, China's Center for Disease Control and Prevention said there had been “no obvious rebound” during Chinese New Year in late-Jan and Feb 23, where millions reunited for family gatherings.
Potential for all business units to exhibit better y-o-y performance.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Adrian LOH UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-02-09
Read also UOB's most recent report:
2024-03-11 DFI Retail Group - 2023 Back To Profitability On The Back Of Positive Near-Term Trends.
Previous report by UOB:
2023-08-01 DFI Retail Group 1H23 - Recovery Taking Longer Than Expected.
Price targets by 2 other brokers at DFI Retail Target Prices.
Listing of research reports at DFI Retail Analyst Reports.
Relevant links:
DFI Retail Share Price History,
DFI Retail Announcements,
DFI Retail Dividends & Corporate Actions,
DFI Retail News Articles
