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Dairy Farm started at ‘buy’ as a proxy to the North Asian consumer boom

Michelle Zhu
Michelle Zhu9/27/2017 02:35 PM GMT+08  • 2 min read
Dairy Farm started at ‘buy’ as a proxy to the North Asian consumer boom
SINGAPORE (Sept 27): Phillip Capital is initiating coverage of Dairy Farm International at “buy” with a target price of US$9.89 ($13.41), given the Pan-Asian retailer is a proxy to the North Asian consumer boom.
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SINGAPORE (Sept 27): Phillip Capital is initiating coverage of Dairy Farm International at “buy” with a target price of US$9.89 ($13.41), given the Pan-Asian retailer is a proxy to the North Asian consumer boom.

The research house is forecasting a dividend per share (DPS) of 22 US cents for FY17, representing a total return of 35.1% based on the counter’s last closing price of US$7.48.

In a Wednesday initiation report, analyst Soh Lin Sin expects Dairy Farm’s margins to expand in the next few years from a better sales mix of higher margin products in the categories of higher fresh food, more corporate brand items, expansion into the upscale market, as well as an increase in ready-to-eat products – all of which currently still lack competitors.

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