DFI Retail Group - RHB Invest 2024-09-26: Less Earnings Risks From Yonghui Divestment; BUY

• 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.

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