DFI Retail Group - RHB Invest 2024-08-12: Core Operating Profit Improving; Keep BUY

• We retain our BUY call for DFI Retail Group (SGX:D01) on recovery expectations and attractive valuations. 1H24 has shown decent earnings recovery and despite lowering our earnings forecast, we continue to anticipate earnings recovery into FY25F.
• - Read this at SGinvestors.io -
• DFI's share price currently trades at an attractive 10x FY25F P/E and ~6% dividend yield.

1H24 below expectations.

• DFI’s 1H24’s revenue was US$4,405m (-4% y-o-y), while underlying profit was US$76m (+127% y-o-y), below expectations. Revenue decline was affected by the Food (US$1,579m, -6% y-o-y) and Home Furnishing (US$349m, -13% y-o-y) divisions.
  • - Read this at SGinvestors.io -
  • Home Furnishing sales were impacted by Hong Kong and Indonesia’s weak property market and temporal disruption of operations in Taiwan due to April’s Hualien earthquake.
• Operating profit outperformed at US$168m (+81% y-o-y), led by margin recovery and cost controls in the Food and Health & Beauty divisions.
• Underlying associate income missed expectations as well, at US$3m, improving from losses last year. Maxim’s contribution was affected by weak consumption, while Yonghui continued to register smaller losses – offset by Robinsons Retail’s increased contribution.

Interim dividend of 3.5 US cents

• Read more at SGinvestors.io.

Above is an excerpt from a report by RHB Securities Research.
Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.

Read also RHB's most recent report:
2025-12-04 DFI Retail Group - Investor Day Affirms Earnings Growth; Maintain BUY.

Previous report by RHB:
2025-11-05 DFI Retail Group - Earnings Recovery Gaining Traction; Keep BUY.

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 Dividend Payout Dates & Corporate Actions,
DFI Retail News