DFI Retail Group's health-and-beauty segment EBIT margin is likely to improve in 2H, no longer weighed down by closure costs from underperforming Guardian stores in Malaysia, CGS International analysts write in a note.

Guardian, which sells health and beauty products, should benefit from high-traffic malls and network expansion in some Southeast Asian markets, they say.

DFI's other health-and-beauty chain, Mannings, continues to see strong demand in Hong Kong and is likely to attract Chinese tourists shopping for premium products, they add.

CGS International lowers its target price to US$3.45 from US$3.86 after the stock went ex-dividend, but reiterates its add rating, citing the Singapore-listed retailer's improved margin profile.

DFIRG USD jumps 2.19% at 10:07 am, Sep 3.