0803 GMT - Lung Fung's differentiated supply chain seems to warrant the retailer's pricing power, says DBS Group Research's Mavis Hui in a note. The retailer, which sells products ranging from beauty and skincare to healthcare and food, has over 600 suppliers and overseas sourcing offices in Japan and South Korea, she notes. Lung Fung has been able to secure scarce but highly coveted products, including the recent Pokemon 30th Celebration trading card sets, which help reinforce the company's brand equity among younger consumers, the analyst adds. Its stock offers a compelling rerating case as it trades at a steep discount to its peers, while offering a dividend yield of around 9%, she adds. DBS retains its buy rating and 7.98 Hong Kong dollar target price. Shares last closed at HK$4.18.