DFI Retail Group - DBS Research 2023-07-31: Up, Up & Away; Health & Beauty Was The Star

• DFI Retail Group (SGX:D01) reported US$4.6b revenue in 1H23 on par with 1H22, forming 49% of our FY23 estimates, which was in line with expectations.
• DFI also reported US$33m underlying profit, below consensus and our expectation of US$55m on weaker than expected operating profits from Grocery Retail and Home Furnishing segments, offset by strength of Health & Beauty segment.

Impairment loss for Giant Malaysia was lower than expected.

• - Read this at SGinvestors.io -

Potential further one-off gains from sale of properties.

• - Read this at SGinvestors.io -
• Also recall that DFI has put up its Jelita Shopping Centre for sale at a guided price of S$85m in Jun-23 (US$64m equivalent). We believe this sale could materialize in 2H24 (shopping center sales typically take around 1 year to finalize). Given the buoyant property market, we believe DFI will record a considerable profit upon sale and cash proceeds will likely go towards paring down its debt.

Declared interim dividend of US$0.03.

• Read more at SGinvestors.io.

Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2025-03-12 DFI Retail Group - Balancing Value, Growth & Strategic Investments.

Previous report by DBS:
2024-09-26 DFI Retail Group - Share Price Rally Has Just Begun; Transformation Accelerates With Yonghui Sale.

Price targets by 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 Dividend Payout Dates & Corporate Actions,
DFI Retail News