According to Chee, if the supermarket business could double its revenue with this merger, the expansion in scale could “reasonably” translate into a gross margin uplift of 50 to 100 basis points.
Chee Zheng Feng of DBS Group Research is suggesting that DFI Retail Group may consider divesting its stake in Hong Kong’s largest restaurant chain, Maxim’s, amid reports that it is in talks to acquire a rival supermarket operator. By doing so, the Jardine group of companies will mark a significant ownership change in a joint venture dating back more than half a century, as it moves to assume control of about half of Hong Kong’s supermarkets.
According to Chee in his June 11 note, shares of DFI, which have doubled in 2025, are underperforming the broader index year to date as investors take profits. The divestment gains last year were more exciting for the market than the potential gains of operational improvements.
