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CGS CIMB |
UOB KAYHIAN |
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DFI Retail Group Turning the corner
■ We upgrade DFI from Hold to Add with higher TP of US$2.71 (13.2x FY26F P/E) on improving profitability, stronger balance sheet and higher div yield. ■ Portfolio optimisation and strong cost controls led to +30bp underlying operating margin expansion in 2H24. ■ DFI announced new FY25F guidance of +2% organic revenue growth and core net profit between US$230m-270m (up 15-35% yoy). ■ It guided for 60% dividend payout ratio to sustain in FY25F; we see potential for special dividend in FY25F from better profits and gearing improvement.
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DFI Retail Group Holdings (DFI SP) 2024: Strong Return To Growth With More To Come This Year
DFI reported stronger-than-expected results with underlying net profit up 30% yoy to US$201m although the bottom line was impacted by impairments and losses related to the sale of Yonghui in China. The company’s convenience and H&B segments continue to do well. The company guided a 14-34% earnings growth in 2025 with perhaps the monetisation of its yuu and media platforms potentially providing juice to its profits over the next 12 months. Maintain BUY. Target price raised to US$2.80.
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UOB KAYHIAN |
MAYBANK KIM ENG |
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Gloves – Malaysia Seasons Of Fall
In the last two months, the Malaysian gloves sector faced an unprecedented selldown due to a slower-than-expected recovery outlook on intensifying competition in non-US markets and US distributors’ frontloaded inventories. This was also accelerated by US’ volatile trade policies, causing investors to turn risk-off. Nevertheless, the sector is still on track for sequential earnings growth, with bargain valuations offering attractive riskreward balance. Upgrade to OVERWEIGHT.
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Genting Bhd (GENT MK) Action speaks louder than words
Upgrade to BUY with unchanged SOTP-TP of MYR3.98 The Lim family and CEO buying shares at valuations near all-time lows gives us the confidence that share price could have fully discounted all possible positives. Near term catalysts are TauRx receiving approval for its Alzheimer’s drug and positive resolution to NGCB's investigation on RWLV. Key risk however is GENM losing its USD600m lawsuit. Our estimates and SOTP-TP of MYR3.98 are unchanged. With share price decline of >10% since its disheartening 4Q24 results, the stock now offers 23% upside and 3% dividend yield, we upgrade GENT to BUY.
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| MAYBANK KIM ENG | MAYBANK KIM ENG |
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Astra International (ASII IJ) ESG 2.0: Better-than-average ESG scores
Reaffirm BUY with TP of 5,650 We maintain our BUY recommendation on ASII as we believe that recent FY24 outperformance showed resilience in a challenging auto market, while its diversified portfolio provides shelter. ASII remains undervalued while offering a lucrative dividend yield. ASII has consistently improved its ESG achievement and partially achieved its long-term 2030 ESG targets.
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Astra International (ASII IJ) ESG 2.0: Better-than-average ESG scores
Reaffirm BUY with TP of 5,650 We maintain our BUY recommendation on ASII as we believe that recent FY24 outperformance showed resilience in a challenging auto market, while its diversified portfolio provides shelter. ASII remains undervalued while offering a lucrative dividend yield. ASII has consistently improved its ESG achievement and partially achieved its long-term 2030 ESG targets
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