Elevator Pitch
Singapore-listed pan-Asian retailer, Dairy Farm International Holdings Limited (DFIHY) (DFILF) [DFI:SP] is relatively cheap trading at 20.7 times consensus forward FY2019 P/E, significantly lower than the stock's historical 10-year forward P/E of approximately 25 times.
But Dairy Farm's 1H2019 results were decent but unexciting, with revenue (excluding share from joint ventures and associates) and operating profit down -3% and -5% YoY. The Supermarkets & Hypermarkets segment needs more time for profitability to recover (lowest 1H2019 operating margin of 2.1% among the various business segments), while the Home Furnishings business