DFI Retail Group's Potential Not Fully Captured by the Market -- Market Talk

Dow Jones
2025/07/17

0335 GMT - Singapore-listed DFI Retail Group has been divesting underperforming businesses and adopting initiatives to improve margins, but Citi analysts believe the market hasn't fully captured the group's potential. DFI's focus on lowering costs is shifting capital towards higher-margin products and operations, they say in a note. They expect 2Q results of the food and Maxim's restaurants segments will show trends similar to 1Q. The health and beauty segment could be more promising in 2Q, while the IKEA arm may see margin improvement but remain under pressure. They trim 2025-2027 net profit forecasts by 3%-12% to reflect the sale of its Singapore food business and Robinsons Retail. Citi raises the stock's target to US$3.80 from US$2.80 and maintains its buy rating. Shares are up 4.3% at US$3.13. (megan.cheah@wsj.com)

 

(END) Dow Jones Newswires

July 16, 2025 23:35 ET (03:35 GMT)

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