Equity Analysis /
Singapore

SG : DFI Retail Group - FY22F a year of investment

    Khangchuen Ong
    Khangchuen Ong

    Research Analyst

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    CGS-CIMB
    24 June 2022
    Published byCGS-CIMB

    Divergence in HK and China’s Covid strategy could pose a challenge to near-term border reopening between the two, delaying HB segment recovery. We expect weaker margins for DFI in FY22F in view of macro challenges and further investments in e-commerce. Yonghui’s potential turnaround looks unlikely to offset the weaker core operations; we expect DFI to see profit decline in FY22F. Reiterate Hold.