- We stay positive on DFI Retail (SGX:D01) and raise our FY26-27F earnings by 2% and 5% on FY25’s earnings outperformance.
- DFI Retail targets to achieve US$310-350m of core profit by FY28 through strengthening its value proposition for customers and better operating leverage. DFI Retail's share price trades at an attractive PEG of below 1 – below our FY25-28F earnings growth CAGR of 23%.
FY25 earnings ahead of estimates.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
- The food division’s operating profit grew (+6% y-o-y, US$62m) on earnings recovery in Singapore. The home furnishing segment’s operating profit growth of +61% y-o-y (US$26m) came from better cost controls. The convenience segment’s lower operating profit (US$97m, -6% y-o-y) was due to 1H24’s high base in Hong Kong for a one-off gain from pre-tax increase of cigarette inventory loading. The health and beauty segment’s operating profit growth (US$228m, +8% y-o-y) was led by strong sales across all markets except China. Hence, FY25 earnings outperformed, backed additionally by better-than-expected finance and associate income.
70% dividend payout ratio.
- Read more at SGinvestors.io.
