Analyst Adrian Loh of UOB Kay Hian maintained a Buy rating on DFI Retail Group Holdings (DFIJ – Research Report), boosting the price target to $2.80.
Adrian Loh has given his Buy rating due to a combination of factors that highlight DFI Retail Group Holdings’ strong performance and promising outlook. The company reported a significant increase in underlying net profit for 2024, with a 30% year-over-year growth, reaching US$201 million. This growth was primarily driven by the robust performance in the convenience, health & beauty, and food divisions, alongside reduced losses from its divestment in Yonghui.
Looking ahead, DFI Retail Group Holdings is well-positioned for further growth in 2025. The company has projected a revenue increase of 2% and an underlying profit range of US$230 million to US$270 million, indicating a potential earnings growth of 14-34% year-over-year. Additionally, the company plans to enhance profitability by optimizing its product mix and leveraging its yuu platform for data monetization and advertising opportunities. These strategic initiatives, coupled with a higher-than-expected dividend payout, support Adrian Loh’s Buy rating for the stock.
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.