- We are OVERWEIGHT on Singapore grocery retailers with BUY calls on DFI Retail Group (SGX:D01) and Sheng Siong Group (SGX:OV8). Growth for DFI Retail is driven by the turnaround of Hong Kong and China operations, while we expect Sheng Siong’s growth to be led by performance of new stores – both turning in higher operating margins.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
Performance tracking expectations, recovery thesis intact.
- The latest reported earnings for 3Q23 were largely in line with expectations. Revenue growth was driven by new outlets for Sheng Siong, while for DFI Retail, tourist recovery to Hong Kong and demand recovery drove strong SSSG at Mannings and its convenience division.
- There were minimal changes to our earnings forecasts post 3Q23 earnings as results were within expectations.
Expect more normalised sales going forward.
- Read more at SGinvestors.io.
Alfie Yeo RHB Securities Research | https://www.rhbgroup.com/ 2024-01-03
