- We maintain our positive stance on DFI Retail Group (SGX:D01) on the back of recovery expectations and attractive valuation. The divestment of Yonghui Superstores Co reduces future earnings risks and we continue to anticipate earnings recovery into FY25F.
- - Read this at SGinvestors.io -
- The stock currently trades at an attractive 11x FY25F P/E.
Divests Yonghui for ~CNY4.5bn.
- DFI has announced the divestment of its entire ~21% stake in Yongshui to MINISO Group Holding Limited’s subsidiary for ~CNY4.5bn. This will allow DFI to concentrate its efforts to grow its subsidiary businesses across all of its markets.
- - Read this at SGinvestors.io -
- DFI invested ~US$1.1bn into Yonghui in 2015 and 2016 for an approximately 20% stake, increasing to 21.4% in FY23 due to Yonghui’s share buyback.
Less drag from future earnings risks.
- Read more at SGinvestors.io.
Alfie Yeo RHB Securities Research | https://www.rhbgroup.com/ 2024-09-26
Previous report by RHB:
2024-08-12 DFI Retail Group - Core Operating Profit Improving; 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 Dividends & Corporate Actions,
DFI Retail News Articles
