- Keep BUY with new DFI Retail's target price at US$4.05 (from US$3.09), 16% upside from the current DFI Retail's share price and ~3% FY26F yield.
- - Read this at SGinvestors.io -
1H25 core earnings continue recovering.
- DFI Retail’s underlying profit grew 39% y-o-y to US$105m, within expectations. Revenue was flat at US$4.4bn, with growth in health and beauty (US$1.3bn, +7% y-o-y) offset by declines in convenience (US$1.1bn, -3% y-o-y), food (US$1.5bn, -2% y-o-y), and home furnishing (US$328m, -6% y-o-y) segments.
- - Read this at SGinvestors.io -
- Profit for the convenience stores declined (-18% y-o-y) as 1H24 had a one-off gain for pre-tax increase in cigarette inventory purchases. Otherwise, the convenience segment’s profit would have improved 9% y-o-y.
- The food segment’s operating profit and margins remained stable.
- Associate and JV contribution increased 27% y-o-y to US$36m – driven by better performance from Maxim’s and the divestment of Yonghui Superstores.
Dividend surprises.
- Read more at SGinvestors.io.
