DFI Retail Group is set to experience a robust earnings recovery, with analysts maintaining a “buy” recommendation and raising the target price to $4.05 from $3.09, reflecting a 16% upside. The group’s net profit is expected to rebound this year, supported by its parent company, Jardine Matheson Holdings, which has a history of distributing dividends back to the group level. A special dividend per share of 44.3 US cents has been declared, surprising investors and returning excess cash to shareholders.
The company’s attractive valuation and dividend yield, projected at approximately 3% for the financial year 2026, further bolster investor confidence. Analyst Alfie Yeo noted that the special dividend declaration is a strategic move to enhance shareholder value and reflects the company’s strong cash position.
The announcement comes as part of a broader market analysis by RHB, highlighting DFI Retail Group’s promising recovery trajectory. The group’s performance is closely watched, given its significant role in the retail sector and its potential impact on market dynamics.
Looking ahead, DFI Retail Group’s focus on maintaining a strong dividend policy and capitalising on market opportunities is expected to drive continued growth. The company’s strategic initiatives and financial health position it well for sustained recovery and shareholder returns in the coming years.
“`
