Retail chain Dixy Group has published its preliminary financials for 1H 2008. The press release says the sales revenue shot up by more than 48 % y-o-y in dollar terms. On the whole, the results disclosed do not offer any new essential information as the pace of revenue growth has remained unchanged from 5M 2008. However, we should underscore the high rate of revenue growth at Megamart hypermarkets and Minimart supermarkets, which jumped by a respective 84% and 82%.
Table. Dixy group: key financials for 1H 2008
| Indicator | 6M2007 | 6M2008 | 6M2008/6M2007 |
|---|
| Revenue | 652,0 | 964,0 | 48% |
| Total number of stores | 347,0 | 403 | |
| Retail space, sq. m. | 134 019 | 157 514 | 18% |
Source: company data, Finam estimates
In addition, the group has demonstrated robust growth in like-for-like sales, which have jumped by over 36.5% (the figure is valid for the stores opened before June 1, 2007). However, this growth is mainly linked with the increase in the average receipt rather than considerable growth in the flow of customers.
We are neutral on the operating results reported by the company. We are skeptical about the company's stated plans to open roughly 100 retail outlets in the full year, given that just 19 stores have opened in 1H 2008.
We estimate the fair value of Dixy group at USD 22.1 per share, which implies an upside potential of more than 60% to the current stock valuations.
0.569
0.073
