Dairy Farm braces for more competitive pressures in the mass-market segment

Earnings outlook likely to suffer.

According to CIMB, Dairy Farm‟s earnings risk stem from the higher competitive pressures in Malaysia and Singapore, especially in the mass-market segment. 

Here's more from CIMB:

In Malaysia, the emergence of local players has eroded Dairy Farm‟s market positioning. In Singapore, NTUC Fairprice and Sheng Shiong have kept its prices in check.

There could also be inherent operational risks in Indonesia as Dairy Farm expands rapidly, incurring higher-than-expected start-up and administration costs.

In Hong Kong, the unknown risk is the possibly excessive competitive behaviour by ParknShop in the event that its new owner decides to rock the boat. ParknShop is currently in the process of being sold.