- We continue to be positive on DFI Retail Group’s earnings recovery expectations and attractive valuation. Core operations have shown profitability improvement, while the recent divestment of Yonghui Superstores Co reduces future earnings risks.
- - Read this at SGinvestors.io -
3Q24 within expectations, profitability improved.
- DFI Retail’s latest interim management statement saw underlying net profit grow 4% y-o-y despite a 3% y-o-y decline in subsidiary sales. While subsidiary profit performance improved, profit could have been better, if not for lower contribution from associates.
- Like-for-like sales across food, convenience, health & beauty, and home furnishing divisions declined, mainly due to summer outbound travel by consumers and sales mix changes for home furnishing. However, due to improved cost controls and sales mix, subsidiaries turned in better margins and profitability.
- - Read this at SGinvestors.io -
- DFI Retail’s overall profit continues to be within expectations, even though revenue was affected by weaker sales.
Raise target price & FY24F earnings by 3% each.
- Read more at SGinvestors.io.
Alfie Yeo RHB Securities Research | https://www.rhbgroup.com/ 2025-01-16
Previous report by RHB:
2024-09-26 DFI Retail Group - Less Earnings Risks From Yonghui Divestment; BUY.
Price targets by 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
