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

DFI Retail Group - Less Earnings Risks From Yonghui Divestment; BUY

Published:
DFI Retail (SGX:D01) | SGinvestors.ioDFI Retail (SGX:D01)
  • 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





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