Dairy Farm Int'l

Dairy Farm Int'l > Hold

CGS-CIMB, March 9

March 9 close: US$8.03

Target price: US$8.40

FY17 core net profit (US$467.5 million) was below at 94.7 per cent of our expectations of US$493.3 million, but marginally within consensus at 95.2 per cent of forecasts (US$491 million). Core net profit excludes one-off business change costs for the South-east Asia (SEA) food business amounting to US$64 million (at shareholder level).

A strategic review, especially for South-east Asia, is still underway. Downgrade to hold from add as the ongoing strategic review may take time to bear fruit.

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