DFI’s grocery segment was under pressure pre-Covid, partially due to the unfavourable market dynamics, coupled with emerging competition from NTUC Finest. With ongoing store network rationalisation, including the closure of Cold Storage locations in suburban areas (with higher HDB concentration) and unprofitable Giant stores, DFI’s Singapore grocery segment is expected to be well positioned to return to profitability.
DBS Group Research has identified DFI Retail Group (SGX:D01
) and Thai Beverage (SGX:Y92) (ThaiBev) as the top stock picks within the Singapore retail sector for positive near-term business outlook with added corporate activity catalysts.
The research house has “buy” calls for both stocks, with a target price of $3.00 for DFI and 77 cents for ThaiBev.
