Broker: CGS International
Date of Report: May 30, 2025
DFI Retail Group Accelerates Asset Monetisation: Strategic Divestments, Strong Financials, and Sector Peer Analysis
DFI Retail Group’s Portfolio Rationalisation: \$1.2 Billion in Divestments Since 2024
DFI Retail Group has rapidly reshaped its asset base, divesting approximately US$1.2 billion in major holdings since 2024. This bold portfolio rationalisation drive, led by CEO Scott Price since August 2023, has included the sale of stakes in prominent retail assets such as Robinsons Retail Holdings, PT Hero Indonesia, Yonghui Superstores, and, most recently, Cold Storage Singapore.
Robinsons Retail Holdings Stake Divestment: Unlocking Value at a Premium
On May 30, 2025, DFI Retail Group completed the sale of its 22.2% stake in Robinsons Retail Holdings Inc. (RRHI) for Php15.8 billion (approximately US$283 million). This transaction was executed at a 36% premium relative to RRHI’s share price on May 29, 2025, translating to an implied valuation of 11.2 times RRHI’s FY24 core P/E—attractive compared to DFI’s own valuation of 14 times. Notably, RRHI repurchased these shares.
Key deal details:
- DFI had previously recorded a US\$231 million impairment charge related to RRHI in FY24.
- RRHI contributed US\$17 million to DFI’s FY24 earnings.
- Proceeds from the RRHI sale are earmarked for investments in digital retail media, own-brand innovation, and omnichannel capabilities across DFI’s core markets.
Major Asset Sales: Building a War Chest
Since the CEO’s appointment, DFI Retail Group has executed several high-profile divestments:
- Yonghui Superstores: US\$623 million
- Cold Storage Singapore: US\$96 million
- Other assets (including PT Hero Indonesia): US\$162 million in FY24
As of March 2025, DFI reported net cash of US\$127 million, having used most Yonghui proceeds to pay down debt. The recent asset sales have further strengthened DFI’s liquidity.
Shareholder Returns: Special Dividend Potential
DFI’s regular dividend payout ratio stands at 60%. Based on this, the forecasted dividend per share (DPS) for FY25 is US$0.12. However, if 60% of the Cold Storage sale proceeds are allocated as a special dividend, the FY25F DPS could rise to US$0.16, implying a dividend yield of 5.8%. This aligns with the CEO’s strategic framework, which prioritises shareholder returns.
Future Monetisation Opportunities
DFI has also impaired approximately US$193 million of goodwill in its Macau San Miu Supermarket and Cambodia Food Business over FY23-FY24. These assets are considered ripe for future monetisation, potentially unlocking additional value for shareholders.
Financial Performance and Outlook
DFI’s financial forecasts remain robust, underpinned by ongoing cost efficiencies and strategic asset reallocation:
| US\$m (unless stated) |
Dec-24A |
Dec-25F |
Dec-26F |
Dec-27F |
| Total Net Revenues |
8,869 |
8,999 |
9,197 |
9,392 |
| Gross Profit |
3,229 |
3,375 |
3,421 |
3,493 |
| Operating EBITDA |
1,037 |
1,095 |
1,126 |
1,164 |
| Net Profit |
(245) |
133 |
276 |
302 |
| Recurring ROE (%) |
N/A |
45.6 |
43.5 |
39.6 |
| DPS (US\$) |
NA |
0.12 |
0.13 |
0.14 |
| Dividend Yield (%) |
NA |
4.17 |
4.53 |
4.89 |
| FD Core P/E (x) |
NA |
14.10 |
13.45 |
12.30 |
Notably, the group expects 31% core net profit growth in FY25, with a target price maintained at US$3.00, implying an 8.7% upside from current levels.
DFI Retail Group’s Regional Peer Comparison
A comprehensive peer analysis across Asia’s retail sector provides further insight into DFI’s market positioning. Key metrics include P/E, EPS growth, ROE, P/BV, and dividend yield:
| Company |
Ticker |
Rec |
Price (lcl curr) |
Target Price |
Market Cap (US\$m) |
CY25F P/E (x) |
CY26F P/E (x) |
2Y EPS CAGR (%) |
CY25F P/BV (x) |
Recurring ROE (%) |
Dividend Yield (%) |
| DFI Retail Group |
DFI SP |
Add |
2.76 |
3.00 |
3,736 |
14.1 |
13.4 |
14.6 |
6.48 |
45.6 |
4.2 |
| Sheng Siong Group |
SSG SP |
Add |
1.81 |
1.90 |
2,114 |
19.1 |
18.0 |
6.1 |
4.71 |
25.1 |
3.7 |
| Sun Art Retail Group |
6808 HK |
Add |
2.38 |
2.50 |
2,896 |
35.3 |
25.5 |
n.a. |
1.02 |
2.9 |
2.7 |
| Yonghui Superstores |
601933 CH |
Hold |
4.98 |
5.80 |
6,289 |
61.6 |
49.4 |
n.a. |
8.77 |
14.3 |
0.0 |
| MINISO Group |
9896 HK |
NR |
33.90 |
n.a. |
5,409 |
13.6 |
10.8 |
n.a. |
3.29 |
24.8 |
3.6 |
| Sa Sa International |
178 HK |
NR |
0.63 |
n.a. |
249 |
13.3 |
13.5 |
4.9 |
1.58 |
12.1 |
5.8 |
| Chow Tai Fook Jewellery |
1929 HK |
NR |
11.18 |
n.a. |
14,238 |
16.3 |
14.7 |
14.8 |
3.93 |
23.9 |
4.9 |
| Cafe de Coral Holdings |
341 HK |
NR |
6.96 |
n.a. |
515 |
13.5 |
12.0 |
7.7 |
1.38 |
10.9 |
7.9 |
| China Tourism Group Duty Free |
1880 HK |
NR |
49.80 |
n.a. |
17,182 |
19.5 |
16.5 |
15.0 |
1.63 |
8.9 |
2.7 |
| 7-Eleven Malaysia Holdings |
SEM MK |
Hold |
1.98 |
1.98 |
518 |
27.1 |
23.1 |
23.8 |
5.01 |
18.9 |
2.2 |
| Aeon Co M Bhd |
AEON MK |
NR |
1.44 |
n.a. |
475 |
12.2 |
11.4 |
17.5 |
0.99 |
8.4 |
3.5 |
| Aspirasi Hidup Indonesia |
ACES IJ |
Hold |
575 |
n.a. |
603 |
10.8 |
9.5 |
7.7 |
1.44 |
13.6 |
5.9 |
| Ramayana Lestari Sentosa |
RALS IJ |
NR |
406 |
n.a. |
176 |
8.0 |
7.3 |
2.6 |
n.a. |
8.0 |
11.8 |
| Mitra Adiperkasa |
MAPI IJ |
NR |
1,300 |
n.a. |
1,322 |
10.7 |
8.8 |
17.6 |
1.61 |
16.0 |
1.3 |
| Industri Jamu Dan Farmasi Sido |
SIDO IJ |
Hold |
515 |
n.a. |
946 |
13.2 |
12.2 |
4.1 |
4.31 |
33.3 |
7.0 |
| Puregold Price Club |
PGOLD PM |
Add |
31.00 |
42.00 |
1,602 |
7.7 |
6.9 |
12.6 |
0.86 |
11.3 |
5.8 |
| Robinsons Retail Holdings |
RRHI PM |
Add |
37.80 |
57.50 |
962 |
9.4 |
8.0 |
5.3 |
0.60 |
6.3 |
5.3 |
| CP All |
CPALL TB |
Add |
47.00 |
65.25 |
12,932 |
15.2 |
13.6 |
11.8 |
2.96 |
20.6 |
3.2 |
| Berli Jucker |
BJC TB |
Add |
19.80 |
26.00 |
2,435 |
15.1 |
13.3 |
17.9 |
0.65 |
4.2 |
4.5 |
| Home Product Center |
HMPRO TB |
Hold |
7.70 |
8.40 |
3,082 |
15.7 |
14.7 |
7.1 |
3.66 |
23.0 |
5.1 |
Key Financial and Operational Ratios
- Operating EBITDA margin is forecasted to improve from 11.7% (2024A) to 12.4% (2027F).
- Inventory days are expected to decrease, indicating improved efficiency.
- Return on capital employed (ROCE) is projected to reach 44.2% by 2027F.
- Grocery retail outlet count is forecasted to increase modestly, while convenience and health/beauty outlets are also set for growth.
Shareholder Structure and Market Data
- Major shareholder: Jardine Matheson Holdings (77.6%)
- Free float: 22.2%
- Market capitalization: US\$3,736 million
- Average daily turnover: US\$2.83 million
- Analyst consensus: 7 Buy, 1 Hold, 0 Sell ratings
Risks and Catalysts
Key drivers for further upside include:
- Accelerated recovery in Hong Kong supermarket sales
- Potential special dividends from recent asset sales
- Continued cost efficiencies
Risks to watch:
- Sluggish economic recovery in Hong Kong impacting sales growth
- Cost pressures potentially affecting margin improvements
Conclusion: DFI Retail Group Positioned for Growth and Enhanced Shareholder Value
DFI Retail Group’s ongoing asset monetisation, strong balance sheet, and focus on digital and omnichannel innovation position it as a formidable player in the Asian retail sector. With a robust dividend outlook, prudent capital management, and a clear strategy for unlocking further value, DFI stands out as an attractive prospect for investors seeking exposure to dynamic retail markets across Asia-Pacific.
