“Its dividend yield is decent due to parent company Jardine Matheson Holdings’ practice of uplifting dividends back to the group level,” he adds. During the group’s latest 1HFY2025 ended June earnings, it declared a special dividend of 44.3 US cents. This is on top of the 3.5 US cents in interim dividend declared. While this came as a surprise, Yeo notes that this helps to return excess cash back to shareholders and Jardine Matheson.
The way Yeo sees it, 1HFY2025 core earnings have continued to recover. Underlying profit grew 39% y-o-y to US$105 million, coming in within expectations. Revenue was flat at US$4.4 billion, with growth in health and beauty, but offset by declines in convenience, food and home furnishing segments. Underlying operating profit stood at US$174 million, 3.8% higher y-o-y.
DFI has raised the lower end of its underlying profit guidance from US$230 million to US$250 million, while maintaining the higher end of its forecast at US$270 million. “Our earnings estimates are unchanged since 1HFY2025 earnings are in line,” adds Yeo.
DFI has recently divested Robinsons’ Retail Holdings (RRHI) to facilitate its strategy of divesting minority position and redeploying capital to support the growth of its subsidiary businesses for higher returns. The transaction has also helped to unlock shareholder value as well. It will deploy its divestment proceeds in accordance with its capital allocation strategy and long-term growth plans.
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As at 12.00pm, shares in DFI are trading at US$3.52, up 53% ytd.
