🚀 1-Min Stock Rundown

📌 DFI Retail - Resilience & Strategic Repositioning

📈 Revenue & Underlying Profit
Revenue declined 3% YoY to US$8.87 b in FY2024, impacted by higher tobacco taxes in Hong Kong and the exit from certain underperforming markets. However, underlying profit surged 30% YoY to US$201 m, with EPS rising from US¢11.49 to US¢14.91, reflecting effective cost management and margin recovery.

📉 Non‑Trading Charges & Net Loss
The group reported a net loss of US$245 m due to US$445 m in non-trading impairments, primarily from goodwill write-downs in Macau and Cambodia, and a fair value loss on its former Robinsons Retail stake. These charges, while non-cash, overshadow an otherwise strong operating performance.

📦 Portfolio Simplification & Cash Position
DFI completed the sale of its stake in Yonghui and divested its Singapore food business (Cold Storage and Giant) to Macrovalue for S$130 m. These moves streamlined the portfolio and returned the group to a net cash position, enhancing its flexibility for reinvestment into core segments like Guardian and 7-Eleven.

🛒 Segment Performance & Competitive Landscape
The convenience segment benefited from a product mix shift toward higher-margin non-tobacco items, while the food segment saw improved profitability in Singapore. Across its 2,104 food outlets and 3,421 convenience stores, DFI remains a key player in Asia’s multi-format retail landscape.

🏪 Peer Comparison: Sheng Siong & NTUC FairPrice
DFI is repositioning for margin-accretive growth compared to supermarket-focused peers like Sheng Siong and NTUC FairPrice. While those players emphasize everyday low prices and fresh produce dominance, DFI’s strength lies in health, beauty, and convenience - segments with faster inventory turnover and better margins.

💵 Dividend & Analyst Outlook
DFI raised its final dividend to US¢7.00, bringing full-year payout to US¢10.50 - a 31% increase. This implies a dividend yield of around 3.8–4.0%. Analysts remain positive, citing sustainable margin expansion, a healthier balance sheet, and clear capital allocation discipline.

📅 Near‑Term Catalyst
While first-quarter 2025 saw underlying profit decline 18% YoY due to the absence of Yonghui contributions, the core retail operations remain intact. Investors will look to the upcoming July results for signs of continued recovery and evidence of earnings durability.

📈 Conclusion
With a simplified business model, improved cash position, and targeted focus on high-growth verticals, DFI is well-placed to defend its position in Asia’s evolving retail sector. A compelling pick for investors eyeing stable dividends and long-term strategic clarity amid shifting consumer trends.

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Cheers,

James -Dissecting-Stocks-in-1-min- Yeo