SINGAPORE (July 27): DBS is downgrading its recommendation on Dairy Farm International (DFI), a member of the Jardine Matheson Group, to “hold” from “buy” previously with a lower target price of US$9.35 ($12.73).
In a Friday report, analyst Alfie Yeo says, “We turn neutral on DFI on a slower growth outlook coupled with strong total share price (including dividends) performance (+20%) in the past year. We project earnings growth at a slower pace in FY18F, dragged by lower contribution from associate income especially Yonghui, and higher operating costs.”
This came on the back of the group announcing yesterday that its 1H18 earnings have increased by 6% to US$225 million ($306.2 million), compared to its 1H17 restated earnings of US$212 million, on higher consolidated sales.
