2011 Demand Challenges Show Why Selectivity Is Key

Capitalising on the brighter Asian consumer demand picture for 2010, Hong Kong-headquartered Dairy Farm International Holdings has confirmed that in the year to May 4 it traded ahead of the same period of 2009. Reflected in the retailer's share price, which reached a high of US$7.21 on April 12, the early year performance will leave Dairy Farm confident of exceeding 2009's 4% annual revenue growth in 2010. BMI remains optimistic about Dairy Farm's long-term future, for the reasons discussed below. However, we caution that Asian retail will throw up a couple of major short-term challenges.

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