UOB Kay Hian analyst Adrian Loh believes that despite margin pressures impacting Dairy Farm International (DFI) in 2021, “incrementally positive newsflow” should benefit the company in the medium term.

This includes higher vaccination numbers in DFI’s markets like Hong Kong, Indonesia, Malaysia, Singapore and Thailand as well as in China. “With an increasing number of Asia’s population obtaining the first and second doses of vaccines, we expect a gradual reopening of economies over the next three to six months,” Loh says. He expects this to boost both domestic and tourism-related spending.

See also: RHB lowers TP for Dairy Farm International following sharper-than-expected dip in grocery earnings

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