DFI Retail Group is poised for a significant earnings recovery, according to a recent update by RHB. The company, which is backed by Jardine Matheson Holdings, is expected to see its net profit rebound this year, maintaining a “BUY” recommendation with a new target price of $3.09. This represents a 13% upside, alongside a forecasted 4% yield for the financial year 2025. The stock is currently trading at an attractive 15 times its projected earnings for FY25.
The anticipated recovery in earnings is attributed to the company’s strategic positioning and the supportive dividend policy of its parent company, Jardine Matheson Holdings. This policy uplifts dividends back to the group level, enhancing the overall yield for investors. Analyst Alfie Yeo from RHB highlighted the company’s attractive valuation and positive outlook in the latest report.
The update comes as part of RHB’s broader market analysis, which also includes insights into other sectors such as data centres and sustainable plantations. The report underscores the potential for DFI Retail Group to continue its upward trajectory, driven by its robust business model and strategic initiatives.
Looking ahead, the company’s performance is expected to benefit from ongoing market dynamics and strategic investments, positioning it well for future growth. Investors are advised to keep a close watch on DFI Retail Group as it navigates its recovery path.
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