SEE:CGS-CIMB upgrades Dairy Farm to 'hold', as its main markets emerge from Covid-19-induced lockdowns
For more stories about where the money flows, click here for our Capital section
“We conservatively assume FY2021 net profit could still be lower than FY2019’s net profit of US$323.8 million as international borders have yet to open and movement controls may only be eased in 2HFY2021 with the wider roll-out of vaccines,” she writes. However, she remains positive on the counter as its share price is still trading below its long-term average mean. “We find Dairy Farm attractive for medium-term investors who are looking to revisit recovery plays and willing to ride out the volatilities of the stock (due to HK uncertainties; uneven recovery in Covid-19 cases and in its Southeast Asia business),” she says. As at 4.36pm, shares in Dairy Farm are trading 8 US cents lower or 1.8% down at US$4.43 or 4.4 times price-to-book with a net dividend yield of 3.6% according to DBS’s estimates.