Dairy Farm

Dairy Farm

Postby kennynah » Wed May 07, 2008 8:41 pm

07 May 2008 12:38 GMT

Dairy Farm says trading prospects for year remain positive


LONDON (Thomson Financial) - Dairy Farm International Holdings Ltd. said its trading prospects for the year remain positive despite the more uncertain economic outlook.

The company, which is a member of the Jardine Matheson Group, also said its major businesses have performed well during the period from Jan. 1 to May 6 and the company's cash flow remains strong.
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Re: Dairy Farm

Postby LenaHuat » Wed Aug 27, 2008 10:01 pm

I'm surprised that no1 seems to be interested in this ticker. It's got so many things going for it - its niche in food stores/furniture stores and the rising USD. The trading volumes around mid-July when DOW crashed to 10,700 were startling. :)
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Re: Dairy Farm

Postby LenaHuat » Sat Nov 01, 2008 2:32 pm

OK, juz to let Winston know I'm keen on this ticker :lol:
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Re: Dairy Farm

Postby winston » Sat Nov 01, 2008 2:39 pm

Hi Lena,

I dont have much info on this one as there does not seem to be Analysts covering this company.

The only note that I've is to be careful of their "Thailand" business.

Take care,
Winston
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Re: Dairy Farm

Postby BlackCat » Sat Nov 01, 2008 4:08 pm

Really like their business but valuation seems a little high. Their 1H08 EPS is abt 9.66c (excluding the 13m one off sale). At a share price of $4.00 this gives a PE of abt 20. Not cheap.

It may fit some of the canslim criteria as a growth stock. The chart shows impressive relative strength (not falling ina plunging market). And their 1H08 40% profit increase is due to topline growth. The key would be how much future can earnings grow? A lot, if they are able to add more stores (especially franchises) while admin and overhead costs remain constant. And if same-store sales are unaffected by recession.

Anyone done any work to estimate their future store openings? Only way I can think of it by going through the management guidance throughout the years. And also trying to guess if the number of stores opened has reached saturation point in their many markets. Agree that some analysts reports could be useful...

This is a hard company to analyse, so I'm putting it aside for now.
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Re: Dairy Farm

Postby LenaHuat » Mon Nov 03, 2008 12:45 pm

Hi Winston and Blackcat

Thanks a million for both your responses.
Agree, very rarely can I find an analyst report on this ticker. It has very strong franchises and an excellent mgmt team. Historically, I recollect that it does not have cheap PEs.
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Re: Dairy Farm

Postby winston » Fri Mar 06, 2009 1:33 pm

Not vested. On my watchlist.

From Kim Eng:-

Dairy Farm International Holdings, a pan-Asian retail group and part of the Jardine group, saw net profit rise 29 per cent to US$333 million in 2008 from a year ago. Total sales increased 13 per cent to US$7.7 billion, while earnings per share came to 24.73 US cents, up 29 per cent from the previous period.

'Dairy Farm achieved further good results in 2008, with growth in both sales and profit. Trading conditions were generally favourable in the group's major markets in the first half of the year, although there were signs of some slowing in the second half as consumer sentiment was adversely affected by deteriorating global economic conditions,' the group said.

Sales, including 100 per cent of associates, increased by 13 per cent to US$7.7 billion in 2008. The net profit of US$333 million included non-trading gains of US$13 million arising from asset disposals.

Overall, its financial position remains sound, the group said, with strong cash generation leading to the effective elimination of net gearing at the year end and ensuring that adequate funds are available for expansion. Capital expenditure during the year within the group's businesses amounted to US$257 million
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Re: Dairy Farm

Postby winston » Fri Mar 06, 2009 1:58 pm

Just managed to look at the chart of Dairy Farm:-

http://sg.finance.yahoo.com/q/bc?s=D01. ... z=m&q=l&c=

Dropped only 10% from it's peak. This has got to be one of the strongest counter on the STI
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Re: Dairy Farm

Postby winston » Fri Mar 06, 2009 3:51 pm

From CIMB:-

Dairy Farm International Holdings, a pan-Asian retail group and part of the Jardine group, saw net profit rise 29 per cent to US$333 million in 2008 from a year ago. Retail strategy: Dairy Farm will target Asia's consumer markets Total sales increased 13 per cent to US$7.7 billion, while earnings per share came to 24.73 US cents, up 29 per cent from the previous period.

'Dairy Farm achieved further good results in 2008, with growth in both sales and profit. Trading conditions were generally favourable in the group's major markets in the first half of the year, although there were signs of some slowing in the second half as consumer sentiment was adversely affected by deteriorating global
economic conditions,' the group said.

Sales, including 100 per cent of associates, increased by 13 per cent to US$7.7 billion in 2008.The net profit of US$333 million included non-trading gains of US$13 million arising from asset disposals.Overall, its financial position remains sound, the group said, with strong cash generation leading to the effective elimination of net gearing at the year end and ensuring that adequate funds are available for expansion.

Capital expenditure during the year within the group's businesses amounted to US$257 million.The group is proposing a final dividend of 10 US cents per share, bringing the total dividends for 2008 to 14 US cents per share, a 22 per cent increase over the prior year. (BT)
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Re: Dairy Farm

Postby winston » Thu Jun 18, 2009 2:24 pm

Dairy Farm International – Company update (Pauline Lee 64321453)
Previous day closing price: US$5.28
Recommendation: Unrated
Target price: NA

Asia’s dominant Retailer
Dairy Farm (DFI) is a leading pan-Asian retailer that has 123 years of operating history. From a modest beginning of supplying fresh milk, the group has transformed itself into one of Asia’s largest retailers of daily necessities. DFI operates 4649 outlets and employs over 75,000 people. The stable of brands in its portfolio include Welcome, Cold Storage, the Giant hypermarkets, Shop N’ Save, 7-Eleven, IKEA and the Guardian stores, which are closely knitted with the heart of consumers.

High quality, low-cost retailing
DFI strives to offer consumers value-for-money through efficient, low-cost distribution of high-quality fresh foods and consumer/durable goods. While its convenience stores, IKEA and Maxim are more vulnerable to the economic downturn, DFI’s niche positioning in consumer staple products explains its recession-proof earnings (7-year earnings CAGR of 38%).

A century of hardwork
DFI has a defensible, asset light and cash generative business model, which enables it to expand rapidly while maintaining a low net gearing of 1%. Its stores now occupy prime locations across Asia. Welcome, along with its Park ’N Shop competitor enjoy a duopoly in the Hong Kong supermarket business with an estimated combined market share of near 70%. Mannings is consistently ranked as the most trusted pharmacy brand.

Unstoppable growth momentum
DFI’s success stems from its approach as a “modern retailer” in markets largely dominated by “traditional” retail outlets such as street hawkers and wet markets. Over time, growth potential will come from the switch in consumer preferences towards modern retail store format that offers competitive pricing realized through scale economies, broader product offerings and hygiene. DFI targets to add at least 400 new stores every year. Falling rentals will be an added earnings catalyst in the near-term.

Constant value enhancement
DFI’s premium valuations reflect its growing profitability and solid retail presence. In addition to paying regular dividends since 2002 (~60% payout), DFI has paid out 3 special dividends, boosting the average annual DPS to US$0.21 over the past 4 years. DFI’s asset light model in mass-market retailing across the fast-growing Asia has achieved superior a ROE of ~100%. Key risks are rising competition and unemployment.
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