Dairy Farm refreshes its business for growth

SINGAPORE (Jan 9): RHB Research has maintained its “buy” recommendation for Dairy Farm International as the supermarket operator continues to invest in the fresh food distribution business.

RHB’s Singapore research team noted that the management has been expanding its operations in Singapore and Malaysia and in China through Yonghui Superstores. Given the group’s lower than average margins compared with its peers, the brokerage believes that could be upside in the longer term.

At the same time, the group made country-level management changes in Singapore, Indonesia and China last year. Those were the countries that had been underperforming.

---

Related Stories

• Lim & Tan Securities maintains ‘buy’ on Grand Banks Yachts; almost doubles TP to $1.05
• Brokers’ Digest: AEM, Prime US REIT, Hyphens Pharma, Seatrium, Valuetronics, DFI Retail Group, CDG, Centurion, Sembcorp
• Citi maintains ‘buy’ on Keppel DC REIT after acquisition of two data centres in Genting Lane

---