Dairy Farm

Re: Dairy Farm

Postby behappyalways » Sun Aug 06, 2017 8:56 pm

dairy-farm-posts-7-increase-1h-earnings-us213-mil
https://www.theedgesingapore.com/dairy- ... -us213-mil
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Re: Dairy Farm

Postby winston » Fri Mar 09, 2018 10:37 am

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4Q17: Awaiting the S.E.A.s of change

FY17 core net profit (US$467.5m) was below at 94.7% of our expectations (US$493.3m) but marginally within consensus at 95.2% of forecasts (US$491m).

Core net profit excludes one-off business change costs for the Southeast Asia (SEA) food business amounting to US$64m (at shareholder level).

We are encouraged by the unchanged final dividend of 14.5 UScts; which took total CY17 dividend to 21 UScts despite a weaker financial position.

A strategic review, especially for SEA, is still underway, helmed by the new CEO Ian McLeod who joined in Sep 17.

Downgrade to Hold from Add as the ongoing strategic review may take time to bear fruit. This report marks a change in analyst coverage.

Source: CIMB

https://brokingrfs.cimb.com/3_3AvG8r2aC ... 2wUNQ2.pdf
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Re: Dairy Farm

Postby winston » Fri May 04, 2018 1:10 pm

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Dairy Farm Singapore selling 7-Eleven portfolio of 13 HDB shophouses and a Peninsula Plaza retail shop

By Bong Xin Ying

Dairy Farm Singapore has put up for sale its “7-Eleven Portfolio”, which comprises 13 HDB shophouses and a 999-year leasehold retail shop at Peninsula Plaza.

The asking price is a grand total of $48.79 million, for a total combined strata area of 21,289 sq ft.

According to the marketing agent JLL, the assets can be sold either individually or collectively.

Source: The Edge

https://www.edgeprop.sg/property-news/d ... 17-2816269
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Re: Dairy Farm

Postby behappyalways » Sat Jul 28, 2018 4:52 pm

Dairy Farm posts 6% growth in 1H earnings to $306.2 mil on higher sales
https://www.theedgesingapore.com/dairy- ... gher-sales
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Re: Dairy Farm

Postby winston » Fri Sep 20, 2019 4:54 pm

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Business overview

Dairy Farm International (DFI SP, Reduce, TP: US$7.29) is a 78%-owned subsidiary of JS.

It is one of the top multi-brand retailers in Asia that has exposure to food, health & beauty, home furnishings and restaurants.

It operates over 9,700 outlets and has more than 230,000 employees now.

In FY18, Dairy Farm recruited a new leadership team and unveiled a 3-phase multi-year plan to
transform its business and reset its future direction and competitiveness.

Dairy Farm has five key divisions operating multiple brands, namely:
1. Supermarkets and hypermarkets – Wellcome (Hong Kong), Cold Storage (Singapore and Malaysia), Yonghui (China), Jasons Market Place (Hong Kong, Singapore, Malaysia, Taiwan), Giant (Singapore, Malaysia, Indonesia), etc.
2. Convenience stores – 7-Eleven (Hong Kong, Singapore, China, Macau).
3. Health & beauty stores – Mannings (Hong Kong), Guardian (Singapore), GNC (Hong Kong), Rose Pharmacy (Philippines).
4. Home furnishing stores – IKEA (Hong Kong, Macau, Taiwan).
5. Restaurants – Maxim (Hong Kong, Macau, China, Vietnam, Thailand, Cambodia, Singapore).

Source: CIMB
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Re: Dairy Farm

Postby winston » Fri Sep 20, 2019 4:58 pm

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Financial performance

Dairy Farm registered sales of US$5.8bn for 1H19, 3% lower yoy (1% lower in constant currency terms).

1H19 underlying net profit, restated following the adoption of the new lease accounting standard, IFRS16, was US$177m, 5% higher yoy, as the group benefited from improved net profit margins for Yonghui, the deconsolidation of its associate business Yunchuang and additional profit contribution from the group’s investment in the Robinsons Retail Holdings (RRHI
PM, Add, TP: Php95) business in the Philippines.

Costs associated with the group’s business transformation programme had negative impact on overall net profit growth in 1H19, with continued investment in key areas including human resources, IT infrastructure and digital development, in order to support future business development.

In the food business, Dairy Farm’s 1H19 sales for supermarkets and hypermarkets were lower yoy due to the deconsolidation of Rustan Supercenters (Unlisted) following its sale at the end of 2018.

The implementation of a regional store optimisation plan as part of the transformation of the business also negatively affected sales in Southeast Asia.

Dairy Farm’s underlying sales performance has started to show signs of growth, reflecting
improvements in quality, availability, price competitiveness and general operating standards, notably in Southeast Asia.

In North Asia, Dairy Farm’s sales in Hong Kong continued to rise in 1H19, particularly for upscale stores, but sales in Taiwan came under threat from the aggressive space expansion by local competitors.

Sales for all of the group’s other store formats continued to show positive growth yoy in 1H19.

The group’s convenience store operations achieved higher sales yoy in 1H19 for all markets,
with the strongest growth coming from stores in mainland China. Overall net profit in 1H19 was slightly lower yoy as improved profits in Hong Kong and Macau were more than offset by investments to expand store space during the period.

In health & beauty, Dairy Farm reported strong sales in 1H19 for North Asia, against substantial sales growth during the same period last year, reinforcing the strength and resilience of the Mannings brand.

Guardian in Southeast Asia also delivered encouraging 1H19 sales performance.

IKEA achieved sales growth in 1H19 for all markets, but profitability was lower yoy due to the increased cost of goods and pre-opening expenses for new stores under development in Taiwan and Indonesia.

E-commerce activities rose in 1H19, with positive results in all markets.

In May, IKEA opened its sixth store in Taiwan in Greater Taipei City, with encouraging initial results sales.

Maxim’s delivered good 1H19 sales performance across all key businesses, especially restaurants, where customers have shown strong engagement with new franchises.

Yonghui reported strong underlying sales and net profit growth in 1H19, mainly driven by the continuing expansion of its store network and healthy like-for-like sales growth. Yonghui also benefited from the partial divestment of Yunchuang and its new technology format at end-2018.

Source: CIMB
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Re: Dairy Farm

Postby winston » Fri Sep 20, 2019 5:06 pm

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Dairy Farm - Outlook

Dairy Farm guides that five new IKEA stores are currently under construction, with store openings scheduled periodically over FY20F (three in Indonesia, one in Taiwan and one in Macau).

Dairy Farm aims to expand to 17 stores (from 11) over the next two years.

We estimate Dairy Farm’s North Asia’s 1H19 operating margin fell to 6.3% (vs. 1H18: 6.6%) due to weaker convenience store margins (from investment in additional store space) and the competitive Taiwan supermarket business.

We think HK margins may have been sheltered by its health & beauty sales growth (Dairy Farm does not provide segmental earnings breakdown) that benefited from the influx of mainland Chinese visitors in FY18 and up to 1H19. However, our Hong Kong research team recently cut its Hong Kong visitor arrivals growth forecast for 2019F to 5% yoy (vs. 10% previously) on the back of the recent political instability and social unrest.

Our analyst also expects retail sales in Hong Kong to soften and forecast retail sales to decline by 5-10% yoy in 2019F (vs. previous estimate of low-single-digit increase), with middle- to high-priced consumer goods and discretionary goods likely to be the worst hit (this could translate into negative impact on earnings of Maxim restaurants).

According to Bloomberg, in Jun 2019, Hong Kong retail sales value for medicines and cosmetics fell by 9.2% mom, while the number of China visitor arrivals to Hong Kong fell by 15.4% mom. All this could put pressure on Dairy Farm’s 2H19F earnings from North Asia, in our view.

Source: CIMB
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Re: Dairy Farm

Postby winston » Fri Sep 20, 2019 8:55 pm

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Aug 1, 2019

DAIRY FARM INTERNATIONAL HOLDINGS LIMITED
HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2019


Highlights
Combined sales (including 100% of associates and joint ventures) up 13%
Subsidiary sales down 3% driven by business change
Underlying profit up 5%
Continuing positive sales growth in four out of five Divisions
Improving trends in Southeast Asia
Multi-year transformation continues on track

https://links.sgx.com/FileOpen/DFIH.ash ... eID=572819
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Re: Dairy Farm

Postby winston » Mon Sep 23, 2019 9:44 am

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Dairy Farm (DFI SP, NEUTRAL, TP: USD6.63)

Near-Term Headwinds Persist

Company Update

Maintain NEUTRAL with a lower TP of USD6.63, from USD7.38, 0% upside and c.3.3% yield.

While contribution from Health & Beauty business should still be Dairy Farm’s main driver for FY19-20F earnings, we remain cautious on the outlook amidst ongoing protests in Hong Kong.

A sustainable c.4% dividend yield should provide support to share price.

Trading at 25x FY20F P/E (historical average: 26x), we think there is currently a limited upside to the stock price given the weakened outlook.

Source: RHB

https://research.rhbtradesmart.com/atta ... 103544.pdf
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Re: Dairy Farm

Postby winston » Wed Sep 25, 2019 9:45 am

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Ongoing Hong Kong protests dim Dairy Farm's outlook

by Benjamin Cher

SINGAPORE (Sept 23): The ongoing Hong Kong protests have reached Week 16, and it is dimming the outlook for Dairy Farm International Holdings, the retail business which derives some 70% of its operating profit from Hong Kong.

Juliana Cai, an analyst at RHB Group Research, believes the company will see headwinds as protests are likely to impact retailers, especially those located at Causeway Bay near the rallying points.

“Based on data provided by the Census and Statistic Department of Hong Kong, retail sales in June and July fell 7% and 11%,” Cai says in a Sept 23 report.

The analyst is maintaining her “neutral” call on Dairy Farm, but lowering her target price by 10.2% to US$6.63.

While the health and beauty segment is still expected to be the main contributor to Dairy Farm’s earnings in Fy19-20F, Cai warns that the segment is likely to shrink in 3Q19.

She notes that medicine and cosmetic sales in Hong Kong have declined 5% y-o-y and 16% y-o-y in June and July, respectively.

“The chief supervisor of The Cosmetic and Perfumery Association of Hong Kong cited that cosmetics sales are estimated to have dropped by close to 40% in the city’s popular tourist shopping areas,” says Cai.

This segment is also exposed to tourism spending, which has been affected by the ongoing protests.

Even if the protests taper down, Cai expects the downward pressure on the health and beauty segment to continue in 4Q19, as mainland China tourist arrivals are likely to decline.

“In July, y-o-y growth in mainland China tourist arrivals also slowed to 5.5%. The Travel Industry Council of Hong Kong also cited that the number of Chinese group tours to Hong Kong has declined by 90% y-o-y in the first ten days of September and was down 63% y-o-y in August,” she adds.

Factoring in the potential decline in Hong Kong sales, which is likely to be partially offset by improving sales at its Manning stores in China and Guardian stores in Southeast Asia, Cai is cutting the earnings forecast for Dairy Farm by 2% for FY19-20F.

After closing at US$6.65 on Sept 20 – the lowest level since July 2016 – shares in Dairy Farm have climbed 8 US cents higher, or up 1.2%, to US$6.73 as at 11.54am on Monday.

According to RHB valuations, this implies an estimated price-to-earnings ratio of 25.3 times and a dividend yield of 3.3% for FY19F.

Source: The Edge

http://www.theedgesingapore.com/capital ... 401b309bc7
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