Dairy Farm dead set on speeding up its store expansion this year

Target markets are Indonesia, China.

According to DBS, management is accelerating its store expansion this year. Analysts believe Indonesia and China will be the key markets, since these markets have yet to mature and offer headroom for store expansion.

Here's more from DBS:

In China, we believe there is scope to open more 7-Eleven convenience stores given the vast potential. PT Hero has raised Rp 2,980bn (c.US$260m) through a rights issue in 2013 for repayment of borrowings and to fund store expansion.

We understand from management that it has plans to expand nationwide eventually. Most stores are currently located around Jakarta and central Java.

DFI’s strategy continues to be Asia-focused, and engaged in direct modern retail trade to the end customers. It will focus its growth in attractive markets and business segments while seeking to attain operating efficiencies for better profitability.