Dairy Farm

Dairy Farm: CIMB maintains O/p with US$13.62 TP. Note that FY12 results were 17% short of forecast as 2H came in at 38%, below house and consensus expectations due to a reversal of Giant Malaysia’s supplier income, which had been booked incorrectly over the past few yrs. House cut FY13-14 EPS by 10% for lower rev and margins. But residual income based-target price is raised for lower COEs, partially offset by the slower growth profile in house 3-stage model.