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Dairy Farm's long term prospects intact but opex expected to stay high over next 2 years: RHB

Samantha Chiew
Samantha Chiew7/30/2018 10:40 AM GMT+08  • 3 min read
Dairy Farm's long term prospects intact but opex expected to stay high over next 2 years:  RHB
SINGAPORE (July 30): RHB Research is downgrading Dairy Farm International (DFI) to “neutral” from “buy” with a lower target price of US$9.60.
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SINGAPORE (July 30): RHB Research is downgrading Dairy Farm International (DFI) to “neutral” from “buy” with a lower target price of US$9.60.

In a Monday report, RHB analyst Juliana Cai says, “While we are positive on long-term prospects, we expect to see operational expenditure remaining high over the next 12-24 months as it restructures and invest in stores and IT infrastructure.”

To recap, DFI reported a 6% in 1H18 earnings to US$225 million ($306.2 million) from its 1H17 restated earnings of US$212 million.

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