Sheng Siong & DFI Retail - RHB Research 2025-01-21: Earnings Growth On Track; OVERWEIGHT

• We maintain an OVERWEIGHT rating on the Singapore grocery retailer segment, with BUY calls on Sheng Siong and DFI Retail.
• - Read this at SGinvestors.io -
• 19% for DFI Retail.

- Read this at SGinvestors.io -

3Q24 numbers above estimates on better cost control and operating leverage.

• Grocery retailers chalked stronger-than-expected results as a result of their wider margins. Sheng Siong recorded a higher gross profit margin and progressive wage credit grants from the Government, while DFI Retail turned in better profitability on a better product mix and cost control, especially for its Singapore’s food division.

Sector growth driven by cost efficiencies and new outlets.

• Read more at SGinvestors.io.

Alfie Yeo RHB Securities Research | https://www.rhbgroup.com/ 2025-01-21 SGinvestors.io

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