Dairy Farm

Dairy Farm: CIMB maintains O/p with US$11.90 TP. Inspired by Dairy Farm’s mass-market banner Giant’s “Dare to compare” promotional campaign that urges consumers to discover which chain sells the cheapest products, we found that the stock is trading cheaply on historical and index bases. The house upgrade Dairy Farm to Outperform from Neutral, following its recent share price weakness. House reduce FY14-15 EPS by 1-3% for lower margins. House residual income-based target price drops by 3% accordingly. Believe that its earnings have reached trough, which should support Dairy Farm's share price. Additional catalysts could come from easing conditions in Malaysia and improvement in Mannings China.