In a report released yesterday, Lim Siew Khee from CGS-CIMB upgraded DFI Retail Group Holdings (DFIJ – Research Report) to a Buy, with a price target of $2.71.
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Lim Siew Khee has given his Buy rating due to a combination of factors including an improvement in DFI Retail Group Holdings’ profitability and a stronger balance sheet. The company has demonstrated effective portfolio optimization and cost control measures, leading to an expansion in operating margins. Additionally, DFI has provided optimistic guidance for FY25, projecting organic revenue growth and a significant increase in core net profit.
The company’s commitment to a 60% dividend payout ratio, along with potential for a special dividend, further enhances its attractiveness to investors. The strategic use of proceeds from asset sales to reduce debt is expected to result in substantial interest savings, improving the financial health of the company. These factors, combined with potential growth in Southeast Asia and margin improvements, have led to a higher target price and the upgrade to a Buy rating.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a $3.00 price target.
DFIJ’s price has also changed slightly for the past six months – from $9.170 to $9.170, which is a 0% increase.