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BULLISH REPORTS ON ANCHOR GOLD s EXPLORATION
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Joelton
Supreme |
23-Apr-2026 11:35
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DBS maintains ' buy' and US$5 target price on DFI following ' strong start' to FY2026 Chee Zheng Feng of DBS Group Research has kept his " buy" call and US$5 target price on DFI Retail Group after the retailer announced what he calls a " strong start" for the year. In its 1QFY2026 ended March, DFI reported that underlying profit from continuing business grew by 49% y-o-y, ahead of estimates of 22% y-o-y growth expected for the whole of FY2026. The retailer, which sells via brands such as 7-Eleven, Guardian, Ikea, saw strong performance across its convenience, food and home furnishing segments, and enjoyed lower financing costs. DFI reiterates its FY2026 guidance of underlying profit at US$270 to 300 million supported by 2-3% organic revenue growth. It has reaffirmed its mid-term return on capital employed (ROCE) target of above 15% too. Chee estimates that excluding discontinued operations, underlying profit for FY2025 would be around US$240 million. Based on his estimates of US$292 million for FY2026, this implies 22% y-o-y growth. With underlying profit growth of 49% y-o-y in 1QFY2026, DFI is currently tracking ahead of Chee' s expectations. However, Chee flags that the strong growth seen in 1QFY2026 is likely due to lower financing costs after the repayment of US$617 million of debt in Feb 2025, funded by proceeds from the divestment of Yonghui, DFI' s then associate supermarket chain in China. " As such, earnings growth is likely to moderate in the coming quarters," he warns. " Nonetheless, we expect the company to continue benefiting from structurally lower finance costs following the sale of its Singapore food business, which should reduce lease liabilities," adds Chee. The analyst warns that margin pressure in the health & beauty segment, DFI' s most profitable division, may be viewed negatively by investors. Nonetheless, strong performance elsewhere should " more than offset" . Chee further notes that DFI' s reiteration of its ROCE target of above 15% underscores its commitment to disciplined capital allocation and avoiding value-destructive acquisitions in pursuit of growth. Last week, DFI was reportedly in talks to merge its Hong Kong supermarket business with a rival chain operated by CK Hutchison. According to Chee' s calculations in his earlier note on April 17, he figures that there is a significant valuation gap between what CK Hutchison may ask for, and what DFI is willing to pay. |
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Joelton
Supreme |
23-Apr-2026 11:30
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DFI beats Q1 estimates, but analysts warn of moderating growth Growth in all its businesses keeps the retail chain on track to attaining analysts&rsquo FY2026 profit estimates [SINGAPORE] Analysts maintained their buy on DFI Retail Group : D01 +4.57% after the Asian retailer&rsquo s Q1 results beat their expectations, although at least one analyst warned that the conglomerate&rsquo s growth could moderate in the coming quarters. The counter was the largest gainer on the Straits Times Index (STI) on Wednesday (Apr 22), a day after it reported 49 per cent growth in profits from continuing operations for Q1. The counter closed US$0.19 or 4.6 per cent higher at US$4.35 on Wednesday. Analysts from DBS and CGSI maintained a &ldquo buy&rdquo on it and left their target prices unchanged for the counter. CGSI&rsquo s target price is US$5.50, and DBS&rsquo , US$5. However, DBS warned that growth is likely to moderate in coming quarters. Ahead of expectations DBS analyst Chee Zheng Feng said the brokerage expects DFI to turn in an underlying profit of US$292 million in FY2026. The group&rsquo s latest result implies that it is currently &ldquo tracking ahead&rdquo of DBS&rsquo expectations, he added. He noted that DFI&rsquo s strong growth in Q1 was partly driven by &ldquo significantly lower&rdquo financing costs. This was after the company paid down its US$617 million debt in February 2025 with the proceeds of its Yonghui divestment. Chee said that earnings growth is likely to moderate in the coming quarters. However, he expects the company to continue benefiting from &ldquo structurally lower&rdquo finance costs following the sale of its Singapore food business, which should reduce its lease liabilities. DFI sold all its Cold Storage and Giant outlets and two distribution centres to Malaysian retail group Macrovalue for S$125 million in March 2025. CGSI analyst Meghana Kande said that the group&rsquo s strong performance for the quarter also outperformed the brokerage&rsquo s estimates, supported by &ldquo broad-based&rdquo growth by its convenience, food and home furnishing segments. The health and beauty segment led with 7 per cent year-on-year sales growth from higher transactions and bigger basket sizes, which was underpinned by better wellness sales in South-east Asia. Zheng said that although this segment is DFI&rsquo s most profitable, it came under margin pressures from stiffer competition in Malaysia however, its softened performance will be offset by growth in its other segments. The convenience segment booked 1 per cent growth in Q1, including from cigarette sales, which was supported by sales in higher-margin non-cigarette categories. The food business remained stable, with core Hong Kong operations delivering 1 per cent sales growth on a constant-currency basis, Zheng noted. Kande attributed this to &ldquo value-seeking consumer behaviour offsetting volume growth&rdquo and double-digit year-on-year growth from network expansion in Cambodia. As operating profit for the quarter outpaced revenue growth in all but the health and beauty segment, the retail chain appears on track to fulfil analysts&rsquo FY2026 forecasts. It also looks set to generate underlying profits of between US$270 million and US$300 million, and to achieve 2 to 3 per cent organic revenue growth. Kande said the unchanged estimates signalled &ldquo confidence in weathering war-driven cost pressures&rdquo . The group is also on track to attaining its return on capital employed target, or profit generated from its total capital, of above 15 per cent, said both analysts. ParknShop acquisition DFI parent company Jardine Matheson is looking into acquiring ParknShop, the second-largest supermarket chain in Hong Kong and Macau, and merging it with DFI&rsquo s Wellcome brand. No consideration for the speculated deal has been disclosed, but it needs to be below US$300 million to be attractive to DFI investors, said Kande. She said that, given the low profile of the group&rsquo s food segment in Hong Kong relative to its other segments, the merger and acquisition &ldquo would need a heavy valuation discount to be palatable to investors&rdquo . ParknShop has 230 outlets in Hong Kong, behind DFI&rsquo s Wellcome&rsquo s 280 stores. The former has been operating at a loss since 2023, and just turned positive in its Ebitda (earnings before interest, tax, depreciation and amortisation) in 2025. |
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Joelton
Supreme |
22-Apr-2026 11:17
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DFI' s underlying profit from continuing operations up 49% y-o-y in 1QFY2026 Driven by strong performances in its health & beauty and home furnishing segments, DFI Retail Group has reported a 12% y-o-y growth in its continuing businesses for the first quarter this year. Coupled with " disciplined" cost control and lower financing costs, the company managed to improve its underlying profit from its continuing businesses by 49% y-o-y in the same period. Underlying sales, excluding cigarettes, was up 4% y-o-y on a constant currency basis. DFI says it will continue to keep costs down. As at March 31, the company holds a net cash balance of US$56 million. DFI says it remains focused on increasing total shareholder returns while maintaining financial flexibility to pursue inorganic opportunities that accelerate revenue growth and create long-term strategic value. " The group continues to make solid progress on its strategic initiatives to drive market share gains and deliver sustained, profitable growth across all segments," the company adds. It reiterates its mid-term return of capital employed (ROCE) target of above 15% and reaffirms its full-year guidance of underlying profit attributable to shareholders in the range of US$270 million to US$300 million, supported by an organic revenue growth of approximately 2-3%, and a dividend payout policy of 70%. DFI Retail shares closed at US$4.16 up 1.46% for the day and up 5.85% year to date. |
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Joelton
Supreme |
13-Mar-2026 13:47
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DFI speeds up transformation with divestments across Asia
DFI Retail Group&rsquo s recent divestments are not isolated deals but part of a broader reset, as group CEO Scott Price refocuses the Asian retailer on businesses where it has greater control and better margins
DFI, behind Ikea&rsquo s back, began selling Ikea products on Shopee, which flew in the face of Ikea&rsquo s long-cherished model of letting customers open the drawers and bounce on the mattresses in its giant stores. After initial reluctance, Ikea decided there was no point in arguing against the better sales numbers and has given DFI the go-ahead to sell online in another market. Perhaps this bit of rebellious behaviour from Price, who took on the CEO role in August 2023, was what the group needed. For years, DFI, a component of the Straits Times Index, was a stable business selling fast-moving consumer goods to an increasingly affluent middle class in Asia. Over the years, from its home base in Hong Kong, it has grown into one of Asia&rsquo s leading retailers, operating across 12 markets and selling everything from Billy bookshelves, Blackmores fish oil and Meadows potato chips to Genki Sushi and Lawry&rsquo s Prime Ribs. However, as competitive pressures mount, sunk-in investments falter and with Hong Kong&rsquo s retail scene in the doldrums as mainland Chinese tourists no longer spend as freely as before, DFI became a company that no longer excites. Price, previously working for the likes of UPS, Walmart, DHL and Coca-Cola, moved quickly to tighten DFI&rsquo s focus, recycle capital, reset management structures and push for faster execution across the retailer&rsquo s sprawling Asian portfolio. The work is starting to show in the group&rsquo s financial numbers, business structure and DFI&rsquo s share price, which has more than doubled over the past year. In its latest FY2025 ended Dec 31, 2025, revenue held steady y-o-y at US$8.87 billion ($11.29 billion). However, with a better sales mix and the divestment of loss-making stakes, DFI reported earnings of US$235 million, a stark turnaround from US$245 million in red ink in the preceding year. Underlying profit attributable to shareholders, which DFI says is a more accurate measure of its ongoing business performance, rose 35% to US$270 million. In comparison, it reported a profit of US$235 million, compared with a loss of US$245 million a year earlier. The group says the divestments of Yonghui, its long-struggling supermarket chain in China department store Robinsons in the Philippines and supermarket chains Cold Storage and Giant in Singapore and Malaysia, helped shift it from a portfolio business to a more focused operating company. With total divestment proceeds of approximately US$1 billion, DFI paid down debt and achieved a net cash position. More pleasing to shareholders, DFI paid a bumper special dividend of 44.3 US cents per share, plus an interim dividend of 3.5 US cents, from the proceeds of the divestments when it announced its 1HFY2025 results. Along with the final dividend of 10.5 US cents, DFI is paying a total of 58.3 US cents for FY2025. In absolute terms, DFI will return US$740 million to its shareholders, compared with 10.5 US cents in FY2024. &ldquo Effective execution of our strategy drove strong financial performance and higher shareholder returns in 2025, despite a challenging retail environment,&rdquo says chairman Lincoln Pan. &ldquo Our significant progress made in portfolio simplification creates investment capacity for strategic priorities, enabling greater value for our customers and accretive inorganic opportunities to drive sustainable growth and returns,&rdquo adds Pan, who is the newly-appointed CEO of Jardine Matheson, DFI&rsquo s parent company. With the momentum, in FY2026, DFI is aiming for organic revenue growth of 2%&ndash 3% and underlying profit attributable to shareholders of US$270 million to US$300 million. Accurate representation Price concedes that when he first came on board, the retail business &ldquo was disappointing for customers&rdquo . On top of that, company morale was low, and the share price had sunk below US$3 &mdash a fraction of the 2013 peak of more than US$13. From there, Price set out on a turnaround defined by three priorities: customer-first, people-led, shareholder-driven. In its FY2025 results release, DFI says it executed against this strategic framework during the year, strengthening value propositions, expanding customer reach, deepening engagement through data and accelerating digital monetisation. However, &ldquo customer first&rdquo for Price started with a critique of how DFI had been run. &ldquo I think we had the wrong approach that overly centralised key customer decisions in Hong Kong,&rdquo he says. &ldquo Our leadership did not reflect our team members and therefore didn&rsquo t reflect our customers&rdquo . Price points out that roughly 70% of DFI&rsquo s customers and 66% of the employees are females. Yet, when he started, there were barely any women in management roles. That has since risen to 40% and he plans to get that up to half. &ldquo You just can&rsquo t make good decisions without fair representation,&rdquo he reasons. As he refreshes the leadership bench, he is also reducing over-centralisation and empowering more local accountability. He applied consistent P& L reporting formats across the various markets, for example. By putting those he thinks are the right people in charge, Price hopes they can help make the right decisions. &ldquo We found talent that knew Asia, not expats that did not understand the market,&rdquo says Price. In other words, the turnaround was designed not just to cut costs, but also to make the group more relevant to consumers of each market. That operating reset soon gave way to a capital reset. The generous dividend and newfound focus on shareholders stem from DFI&rsquo s need to be sharper about its role as a listed company. Price introduced a total shareholder return (TSR) model, drawing on his experience at Walmart and UPS, blue-chip US-listed companies that are obsessed with their quarterly report cards to investors. This focus on shareholders helps drive home the point that DFI is more aware of its role as a publicly-listed company rather than a loose collection of assets. This new focus also underpins DFI&rsquo s strategic approach &mdash it should no longer be seen as a portfolio-holding company but rather as a focused operating company. In practice, what DFI has done is to move away from assets where it lacks operating control or where the structural economics are less favourable. Price says minority holdings were frustrating because DFI could influence through the board but not actually manage the business. He also points to businesses where DFI lacked sufficient scale or a &ldquo clear right to win&rdquo and to formats on the wrong side of structural trends. DFI, for example, used to own just a fifth of Yonghui, the beleaguered China supermarket chain, before calling it quits. For Singapore consumers, DFI&rsquo s key presence is its chain of Guardian pharmacies and 7-Eleven convenience stores Everyday essentials Amid all the divestment, Price emphasises that DFI is not retreating from Asia. In fact, this will remain its key market. With its leaner portfolio, the group is focusing on how Asian consumers are shopping today: they want convenience, value and more personalised retail experiences, whether offline or online. &ldquo We serve everyday essentials to Asians in Asia,&rdquo he says. While the retail landscape is being reshaped by shifting consumer behaviour and digitalisation, DFI is leaning harder into health and beauty, convenience and omnichannel retail, areas where it believes it has a stronger right to win and better margins than in traditional supermarket formats. &ldquo We are in the business of everyday essentials. No matter what happens, consumers will want to shower every day, pop into a 7-Eleven for a little treat or even have a reasonably priced meal at one of our restaurants,&rdquo says Price, adding that this strategy naturally hedges a bit more than premium retail. That is most visible at 7-Eleven. DFI has been repositioning the convenience chain away from lower-margin cigarette sales and towards higher-margin ready-to-eat (RTE) offerings, a common way to have a quick meal, often by perching on bar-counter-like fittings in stores. Price is betting that this consumption habit, popular in Japan&rsquo s ubiquitous convenience stores, will gain traction among Hongkongers and mainland Chinese alike, given Japan&rsquo s popularity as a travel destination for them. In FY2025, RTE accounted for 24% of sales generated by the convenience stores &mdash up 1 percentage point from FY2024 &mdash as consumers across markets sought more convenient, higher-quality and value-driven meals. DFI plans to expand the RTE food bars to 1,250 locations in southern China and roll out RTE-focused store revamps across Hong Kong by 2028. In Singapore, 7-Eleven also reported robust like-for-like sales growth, which DFI attributes to a stronger RTE proposition and promotional campaigns. That strategy fits current consumer behaviour. The convenience customer is no longer just buying a drink or a pack of gum. Increasingly, the mission is breakfast, lunch, an afternoon snack or a quick meal between errands. The same push towards higher-value, more differentiated retail is evident in health & beauty, operating under the brands Mannings and Guardian. DFI aims to strengthen both brands as &ldquo trusted advisors for wellness&rdquo , supported by technology-enabled, personalised services, such as skin, scalp and health assessments, which are driving higher purchase conversion and basket size. The group plans to expand these capabilities to 25% of its health & beauty store network. The latest step is DFI&rsquo s partnership with Becon, a Samsung-backed company, to launch an AI-powered skin and scalp assessment tool across more than 400 Guardian and Mannings stores in Hong Kong, Indonesia, Macau, Malaysia and Singapore. The move builds on a 2025 proof of concept that, according to DFI, delivered strong customer engagement, purchase conversion and basket growth. DFI is launching an AI-powered skin and scalp assessment tool across its Guardian and Mannings stores in the region DFI is also building up its own private-label business, dubbed &ldquo own brand&rdquo , as part of the bid to better serve consumers across its food, health and beauty segments. The group is not treating private label simply as a margin lever, but as a way to build exclusivity and deliver clearer value to shoppers. In its latest results, DFI says its own brand push is driving higher customer loyalty and sales penetration through greater exclusivity and value. At the same time, a tighter product range and more cross-selling across different formats have lifted margins and sales productivity. That matters in a market where consumers are becoming more price-conscious but are still willing to spend on products they see as functional, yet differentiated. The strategy also builds on foundations that were already being laid before Price took over. DFI&rsquo s own supermarket brand, Meadows, was launched in 2019 to offer better value. Rather than a side offering, Meadows and other own brands will be more central to how DFI sharpens its value proposition in food and deepens wellness positioning in Guardian and Mannings. But of course, an intimate understanding of the customer is critical. According to Price, DFI&rsquo s previous strategy for its own brands was to bring in an &ldquo expat from Europe&rdquo . While cultural differences can be studied, it isn&rsquo t intuitive to do so. &ldquo How does she understand how Asian women feel about skin [and skincare products]?&rdquo he says. Going digital The portfolio reshaping is only one side of the story. The other is how Price wants the remaining businesses to operate. That is where the Ikea example is instructive. Price says traditional big-box retail models have become less relevant as customers change how they shop. He argues that Ikea&rsquo s standard format, with a huge footprint and thousands of items, is not always well suited to dense Asian cities and smaller homes. DFI has therefore been resetting its Ikea proposition by opening smaller stores, cutting the range of furniture and furnishings and emphasising the popular Ikea restaurant franchise even more. At the same time, it began selling more aggressively through digital channels. As Price recalls, when DFI put Ikea on Shopee in Indonesia, the Swedes were nervous. However, he reasons that doing so was an intentional test of the brand&rsquo s ability to adapt to customer behaviour in Asia. That willingness to test and to move faster than the wider organisation may be comfortable with seems to fit Price&rsquo s risk profile. In DFI&rsquo s view, digital can become a more meaningful earnings lever. It wants to strengthen omnichannel capabilities, accelerate innovation of its own brands, and deepen digital monetisation and leverage data more effectively. From 6.4% in FY2024, it is targeting an online sales mix of 7% to 10% by 2028. Similarly, in China, DFI in May 2025 entered into a partnership with Dingdong (DDL), a fresh-food e-commerce player, to build a digitalised cross-border supply chain system. Through DFI&rsquo s Wellcome supermarkets, they provide Hong Kong customers with a diverse selection of quality products at competitive prices, targeting HK$100 million ($16.3 million) in sales in the first year of its launch. The first phase began last April and six types of DDL products are sold in nearly 280 Wellcome stores, as well as through Wellcome&rsquo s online shop and food delivery platform Foodpanda. &ldquo We realised that most of [the supermarket business] in Hong Kong was controlled by middlemen, traders and agents who added margins on top of margins. We went straight to DDL to establish an exclusive deal, cutting out the middlemen,&rdquo tells Price, adding that this allowed supermarkets in Hong Kong to then be competitive, especially against those in Shenzhen, where Hong Kongers would frequently head over for cheaper shopping. By cutting out the middle layer, Price says that products sold in Wellcome are just 1% more expensive than those in Shenzhen. &ldquo No longer is anyone motivated to go across the border to [buy groceries]. I believe Singapore will have to do the same thing with JB. I didn&rsquo t see the way for us to do that with our food business, which is why we&rsquo ve divested it,&rdquo says Price, referring to DFI&rsquo s sale of the supermarkets in Singapore. (see sidebar: Slimming down DFI) Retail digital media Interestingly, DFI, with its network of more than 7,500 retail outlets across the region, plans to leverage its physical presence to open another revenue stream. Dealing with customers, products, and brands day in and day out has given DFI not only a trove of interesting data but also the chance to put a physical medium in front of consumers as they stroll down the aisles in the form of a digital screen. Already, some 10,000 in-store digital screens have been installed, showing videos paid for by brand owners of the products. DFI plans to increase this number to 14,000 in the near term, thereby becoming &ldquo Asia&rsquo s leading omnichannel retail media network&rdquo . Price claims a screen next to a product typically results in higher conversion. Traditionally, other market players that have implemented this media strategy enjoy margins of about 50% to 60% in this business. In the US, retail giant Walmart is also on this, generating advertising revenue of US$6.4 billion in its most recent year, up 46% y-o-y, but accounting for only about 1% of total revenue. Price is using this benchmark as a target for DFI to attain by FY2028. Price also points to the &ldquo yuu&rdquo loyalty ecosystem as a strategic asset because it increases cross-format stickiness. He says the programme allows customers to earn in one format and redeem in another, creating more exclusivity and share-of-wallet opportunities. He notes that yuu has achieved much stronger penetration in Hong Kong than in Singapore so far, with membership in Hong Kong exceeding five million, or roughly 70% of the adult population. What DFI now looks like Following the series of divestments and clear communication of its growth strategy, DFI&rsquo s share price has recovered to its level five years ago. However, for Price, there is plenty of work to be done. DFI&rsquo s food business remains challenging in parts of the region. Home furnishings are still being reset. The consumer backdrop remains uneven. But there is now less ambiguity about the direction of travel. Price&rsquo s version of DFI is not trying to be all things in all formats and markets. It is trying to be more local in execution, more disciplined in capital allocation and more willing to challenge old retail assumptions. That does not make DFI a simple story, but it does make it more coherent. Meanwhile, shareholders who are hoping for another bumper dividend from further divestments will need to temper their expectations. According to Price, DFI is done with selling businesses. &ldquo The divestment cycle of significance is right-sizing our cost of business relative to the resized format and revenue is done,&rdquo he says. &ldquo That&rsquo s not to say there will not be minor opportunities to improve, but it would not be a material one-time charge. I think we are confident we&rsquo re done with that process,&rdquo he adds. Instead of divestments, DFI has returned to acquisition mode. &ldquo But it is only going to be in Asia, in the markets that we operate in today and it is only going to be if we&rsquo re confident that the price paid is agreed to our shareholders. I&rsquo m not overpaying for assets,&rdquo he says. |
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Joelton
Supreme |
13-Mar-2026 13:46
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Slimming down DFI With a series of divestments, the DFI Retail Group Scott Price now leads is considerably slimmer but leaner than when he first took on the group CEO role. Shareholders are not complaining, though. According to DFI then, the transaction was to sharpen its focus on Guardian in Malaysia. That sale was significant not just because DFI exited a sizeable food retail operation, but because it established a pattern. Rather than trying to hold a broad portfolio of businesses across markets &mdash especially those in which it held a minority interest &mdash the group began concentrating on segments where it believed it had stronger competitive advantages. In March 2024, Macrovalue, having grown the Malaysian Cold Storage and Giant businesses bought from DFI, extended its reach across the Causeway. It paid DFI $125 million to take over the latter&rsquo s long-held supermarket chains Cold Storage, CS Fresh, Jason&rsquo s Deli and Giant brands in Singapore. The retail business is, in a certain sense, a logistics business. There was a hint of &ldquo should have&rdquo hindsight, with Price alluding to how by increasing local product sourcing, retailers can better compete with local offerings among consumers. &ldquo As I look at Sheng Siong and their China sourcing, as well as NTUC and their Malaysia sourcing&hellip [the Singapore food business] was at some point going to be very difficult for us to keep up with the investment in price curve without a Malaysia business.&rdquo However, Price qualifies that this deal to sell Malaysia was made before his appointment. &ldquo Not sure if that was what I would have done. But I cannot unwind that,&rdquo he says, adding that he did not see great value in rebuying the Malaysia food business. In any case, the broader direction for DFI is to divest when it cannot take effective control. The big move came in September 2024, when sold its 21.1% stake in the China-based supermarket chain Yonghui Superstores to a buyer linked to the Miniso Group for RMB4.5 billion. DFI says the transaction &ldquo aligns with the company&rsquo s strategic and capital allocation framework, and allows the company to focus a greater proportion of capital to support the growth of its subsidiary businesses across all of its markets&rdquo . The Yonghui exit was particularly notable because it removed a long-held but struggling exposure to mainland China&rsquo s grocery sector. For the year ended Dec 31, 2023, DFI&rsquo s share of Yonghui underlying losses was US$36 million, while the carrying value of the investment stood at US$765 million as at June 30, 2024. The disposal, therefore, did more than raise cash. It also allowed DFI to exit an investment that had weighed on earnings and tied up capital in a business where it lacked operating control. A similar move was made in the Philippines. Last May, DFI completed the sale of its 22.2% stake in Robinsons Retail Holdings, one of the country&rsquo s largest multi-format retailers. DFI says the transaction reflects its &ldquo strategic pivot from a portfolio investor to a focused operating company&rdquo , allowing it to divest minority positions and redeploy capital to support the growth of subsidiary businesses. For consumers here in Singapore, DFI&rsquo s key presence is its chain of Guardian pharmacies and 7-Eleven convenience stores. &ldquo We are sharpening our focus and investment in Guardian and 7-Eleven to deliver even greater value, convenience and innovation to customers. These businesses hold significant potential for growth and our dedicated teams in Singapore are working hard to ensure that we continue to meet and exceed the expectations of our customers in the years ahead,&rdquo says Price. |
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JurongW
Elite |
12-Mar-2026 17:45
Yells: "Earnings give weight, Chart give wings" |
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DFI CEO Scott Price sticks to ' underpromise, overdeliver' playbook for latest financial targets - The Business Times |
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Ltinvestor
Member |
11-Mar-2026 23:35
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DFI Retail Group (DFI SP) UOBKH Target Price USD5.60 2025: Profit Growth And Record Returns From Strategic Reset Highlights • Underlying profit surged 35% yoy to US$270m, driven by stronger subsidiary margins, associate recovery and portfolio simplification. • Divestments generated around US$1b in proceeds, shifting from US$468m net debt to US$70m net cash, enabling US$740m in shareholder returns. • Maintain BUY with a higher target price of US$5.60, implying 30% upside. Analysis 2025 Results 12M to 31 Dec, US$m 2024 2025 Chg % Remarks Sales 8,869 8,869 0.0% Gross profit 3,229 3,255 0.8% Operating profit 199 362 81.6% - Strong cost control seen with more to come in 2026 Associates/JVs -261 60 NM - Higher due to absence of Yonghui losses PATMI -245 235 NM Underlying PATMI 230 270 15.2% - Improvement from subsidiaries, lower financing costs Operating margin 2.2% 4.1% +1.8ppt Net margin -2.8% 2.6% +5.4ppt Source: DFI • Slight beat vs ours and consensus estimates. DFI Retail Group' s (DFI) 2025 underlying profit of US$270m (+35% yoy) was at the top end of guidance and beat ours and consensus estimates by around 2%, supported by margin expansion, associate recovery and portfolio simplification. Reported profit improved to US$235m (2024: a loss of US$245m). DFI ended 2025 in a US$70m net cash position and returned around US$740m to shareholders, including a US$600m special dividend as a result of divestments. • A final DPS of US$0.105 was declared and thus with its interim DPS, total DPS for 2025 was US$0.14. This excludes its US$0.443 in special DPS that was paid out in Oct 25 that came from its divestment activity. |
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Ltinvestor
Member |
11-Mar-2026 23:26
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11 Mar 2026 DBS Group Research Target Price USD5 Key takeaways from investor non-deal roadshow
. - Gradual rollout of franchisee model in Indonesia to Tier 2 cities to work out kinks which could affect the brand
-Apart from ready-to-eat, CVS business looking into other categories like merchandise sale -See valuation expansion headroom with expansion of high margin digital media business -Maintain BUY and TP of USD5 What&rsquo s New We hosted DFI Retail Group (DFI) for a lunch meeting with investors on 10 March 2026. Below are our key takeaways: Health & beauty (H& B) - Store alignment and gradual franchise model rollout The CEO of the Health & Beauty segment highlighted efforts to create a more consistent design and visual identity across stores in different markets. Management believes this improves customer navigation within stores and helps increase basket size. Early results have shown improvements in both sales and gross profit. Management noted that market dynamics differ across countries. For example, Indonesia is more beauty-oriented due to its younger demographic profile. The company highlights that there is still a wellness aspect of beauty offerings such as dermatology-related products. Interestingly, in Hong Kong, full body health assessments offered by the business are largely utilised by consumers aged 35&ndash 45, suggesting younger demographics are also increasingly health focused. In Indonesia, the group plans to expand into Tier 2 cities through a franchise model similar to its 7-Eleven model. Two pilot stores are currently being tested, with plans to expand to around 40 stores in 2026 and potentially 100-200 more stores over time. The pilot phase is intended to ensure that franchise economics are attractive for operators and kinks are worked out before scaling the concept. Franchise stores are expected to have much smaller assortment, about 20-30% of a store in Jakarta, with product assortments and price points tailored to local demographics. For example, products may be sold in smaller satchels rather than full-sized packs. CVS &ndash beyond RTEs with new opportunities outside South China Beyond ready-to-eat offerings, the company is expanding into additional product categories to drive revenue growth amid structural declines in cigarette sales. One example includes merchandising initiatives. Recently, the business collaborated with the K-pop group Seventeen to sell merchandise during their Hong Kong concert. Store expansion will also support growth, particularly in Tier 2 cities in South China where convenience store penetration remains relatively low. Management added that it is currently the only profitable franchise license operator of 7-Eleven in China out of 17 in the country. While it has expressed interest in potentially taking over operations in other regions within China, management stressed that it will not overpay. Capex - full pipeline to deliver on guidance Management indicated that 50% of total capex will be allocated to new store openings and refurbishments, particularly within the H& B segment. 25% will be invested in digital and IT initiatives, with the remaining 25% allocated to supply chain improvements, store maintenance, and sustainability projects. The company reiterated that it has a pipeline of high-return projects including digitalisation, retail media initiatives, and store refurbishments. Capex spending is expected to remain within the guided range of USD200&ndash 220mn. Digital media - long-term multiple expansion driver Management highlighted its plans to expand in-store digital screens and improve utilisation rates before exploring premiumisation opportunities. For example, the company could charge higher advertising rates for prime weekend peak traffic time slots. Management views retail media as a high-margin business and and that it is a driver of premium valuation citing example of Walmart, which has a third of its profits coming from high margin ad and membership income and currently trades at roughly 37x forward PE. As this segment scales, management believes it could support a re-rating of the group&rsquo s valuation multiple. Our views With the asset divestment and capital return-driven value-unlock thesis largely having played out, we do not expect a repeat of last year&rsquo s stellar performance. Looking ahead, execution will be key. We view DFI as a defensive, steady long-term compounder, and based on what we are seeing and hearing, the company appears to be moving in the right direction to deliver sustained earnings growth. As highlighted during the investor day and in our earlier reports, we continue to see meaningful growth headroom in the core business. Beyond earnings growth, we also see scope for further multiple expansion, potentially towards 22&ndash 24x, in line with valuation levels seen in 2017&ndash 2018, where the company was similarly on a resilient sustained earnings growth trajectory. While still relatively immaterial at this stage, we also see digital media as a potential longer-term driver of both growth and valuation upside. Maintain BUY and TP of USD5. |
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Joelton
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04-Mar-2026 10:10
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DFI Retail reports underlying profit of US$270 mil for FY2025, up 35% y-o-y DFI Retail Group has held its revenue steady at US$8.87 billion for FY2025. However, with the better sales mix and the divestments of loss-making stakes, the company has reported earnings of US$235 million for its FY2025, a stark turnaround from US$245 million in red ink in the preceding year. Underlying profit attributable to shareholders, which DFI says is a more accurate measure of its ongoing business performance, was up 35% to US$270 million. The company plans to pay a final dividend of 10.5 US cents per share. Coming on top of the bumper special dividend of 44.3 US cents and interim dividend of 3.5 US cents already paid, DFI will be paying a total of 58.3 US cents. In absolute terms, DFI will be returning US$740 million in total to its shareholders. In contrast, DFI paid a total of 10.5 US cents for FY2024. &ldquo Effective execution of our strategy drove strong financial performance and higher shareholder returns in 2025, despite a challenging retail environment," says chairman Lincoln Pan. " Our significant progress made in portfolio simplification creates investment capacity for strategic priorities, enabling greater value for our customers and accretive inorganic opportunities to drive sustainable growth and returns," says Pan, who is the newly-appointed CEO of Jardine Matheson, DFI' s parent company. Scott Price, DFI' s CEO, is aiming for organic revenue growth of around 2-3% for this current FY2026, and underlying profit attributable to shareholders to be between US$270 million and US$300 million. As indicated in its investors' day last December, DFI is reiterating its goal to achieve US$310-350 million in underlying profit by 2028. DFI Retail Group shares closed at US$4.14 on March 3, up 1.97% for the day, and up 87.33% in the past year. |
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shareprofessor
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04-Mar-2026 09:19
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Buy before it fly further. Next resistance is very far. | ||||
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JurongW
Elite |
03-Mar-2026 19:19
Yells: "Earnings give weight, Chart give wings" |
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DFI RETAIL GROUP HOLDINGS LIMITED 2025 PRELIMINARY ANNOUNCEMENT OF RESULTS Highlights Underlying profit reached the high-end of guidance at US$270 million, up 35% year-on-year &bull Reported profit of US$235 million, up US$480 million year-on-year Health and Beauty delivered strong like-for-like (LFL) sales and profit growth Convenience returned to profit growth in the second half of 2025, supported by a favourable mix shift towards higher-margin, non-cigarette categories Strengthening value-driven, omnichannel proposition in Food and Home Furnishings Divestments of Yonghui, Robinsons Retail and Singapore Food underscored the Group&rsquo s transition from a portfolio to a focused operating company and strengthened balance sheet to a net cash position Returned approximately US$740 million to shareholders for the full year 2025, including a US$600 million special dividend Final dividend of US¢ 10.50 per share based on a new 70% payout policy announced in December 2025 Effective execution of our strategy drove strong financial performance and higher shareholder returns in 2025, despite a challenging retail environment. Our significant progress made in portfolio simplification creates investment capacity for strategic priorities, enabling greater value for our customers and accretive inorganic opportunities to drive sustainable growth and returns. Lincoln Pan Chairman Details: https://links.sgx.com/1.0.0/corporate-announcements/EF1UX7GMAJWJKY5Y/877262_SGX.pdf |
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cmengchan
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20-Jan-2026 11:23
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https://www.theedgesingapore.com/capital/brokers-calls/bolder-targets-and-greater-expectations-uobkh-maintains-buy-call-dfi&ldquo Bolder targets and greater expectations&rdquo , UOBKH maintains &lsquo buy&rsquo call on DFI Retail with higher target price of US$5.30 |
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Joelton
Supreme |
17-Dec-2025 11:32
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DFI Retail Group would do investors a service by releasing market-sensitive news on SGXNet
The company is primarily listed in the UK, with secondary listings in Singapore and Bermuda
[SINGAPORE] Mainboard-listed DFI Retail Group Holdings&rsquo ( DFIRG : D01 0%) closing price shot up 4.9 per cent or US$0.17 to its 52-week high of US$3.67 on Dec 3.
A look at the Singapore Exchange (SGX) website showed no announcement by the Asian retail group that day.
Its last post was more than a month ago, on Oct 31.
Hours after the stock market closed that day, at 7.23 pm, the group announced a three-year plan to deliver &ldquo sustained profitable growth and returns&rdquo via a press release on news distribution centre Media OutReach Newswire.
However, the newswire had already published this release on its website earlier, at 1 pm. That press release was also posted on DFIRG&rsquo s website, but the publication time was not indicated.
In the press release, the group outlined strategic initiatives to grow its underlying profit by 11 to 15 per cent a year from 2025 to 2028. It said that it is aiming to achieve underlying profit of US$310 million to US$350 million by 2028, and improve its return on capital employed to at least 15 per cent.
It also unveiled a new dividend policy based on a 70 per cent payout ratio, effective from the final dividend of 2025, up from the previous 60 per cent payout guidance.
According to DBS Equity Research, DFIRG&rsquo s management laid out clear strategies and financial targets for each operating segment at its inaugural Investor Day that day.
There was a presentation deck for this as well, which showed the event started at about 9 am and concluded at around noon.
Underscoring the market sensitive nature of the disclosures that were made, DFIRG&rsquo s share price rose by a further 11.7 per cent over the next two days. Yet, all this information remains unavailable on the SGX website.
Back in March, the group sold its Singapore food business &ndash which included the Cold Storage, CS Fresh, Jason&rsquo s Deli and Giant brands of supermarkets &ndash to Malaysian buyer Macrovalue. DFIRG said then that it would pivot its focus and resources in Singapore towards its Guardian and 7-Eleven businesses. However, this important information was also announced through a press release, and not via the SGX website. Moreover, while the press release detailing the S$125 million transaction was sent to the media shortly after the Singapore stock market opened, the information was embargoed until 1 pm.
DFIRG shares rose 6.2 per cent or US$0.14 to an intraday high of US$2.39 following the announcement, before ending the day up 4 per cent or US$0.09 at US$2.34.
When queried, the company said that it will publish on SGXNet the regulatory announcements that it files in the United Kingdom, where it maintains a primary listing. It has secondary listings in Singapore and Bermuda.
&ldquo As no regulatory announcement is required to be filed under the UK Listing Rules, the press releases for our Investor Day and divestment of our Singapore food business were made on a voluntary basis and disclosed on our website to facilitate dissemination of information to shareholders and potential investors,&rdquo DFIRG said.
Speaking to The Business Times, David Gerald, chief executive of investor watchdog Securities Investors Association (Singapore), noted that the forward-looking statements in the press release outlined DFIRG&rsquo s strategic ambitions and short-term outlook. &ldquo This clarity on their aspirations is beneficial to investors, but their awareness is crucial.&rdquo
It is laudable that the group made such announcements voluntarily, but its dissemination channel may create asymmetry of information.
The fact that DFIRG unveiled its strategic plan and updated dividend policy at its inaugural Investor Day suggests that the group wants to raise its profile and improve its appeal to investors.
So, it is odd that DFIRG did not also share the information via the Singapore bourse&rsquo s website, where it maintains a listing &ndash even if it is a secondary listing.
Generally, investors would look to the stock exchanges first for announcements of market-sensitive information by listed companies, rather than checking each company&rsquo s website for important news. Hence, for the sake of convenience and fairness to all investors, would it not make sense for DFIRG to begin disseminating market-sensitive information on the stock exchanges where it is listed?
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Joelton
Supreme |
04-Dec-2025 10:51
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DFI Retail Group hikes dividend payout ratio to 70% in three-year plan
The group is targeting a compound annual growth rate of 11 to 15% for its underlying profit
[SINGAPORE] DFI Retail Group : D01 +4.86% has unveiled a three-year strategic roadmap targeting double-digit profit growth and a higher dividend payout, as the supermarket and retail store operator moves to leverage its scale and digital capabilities.
In an investor day presentation on Dec 3, 2025, the group outlined a plan to increase underlying profit at a compound annual growth rate of 11 to 15 per cent between 2025 and 2028. This means recording an underlying profit of US$310 million to US$350 million by 2028.
Alongside its earnings targets, DFI announced a new dividend policy, raising its payout ratio to 70 per cent, effective from the final dividend of 2025. This is an increase from the previous guidance of a 60 per cent payout.
&ldquo The new 70 per cent dividend payout policy reflects our confidence in DFI&rsquo s cash generation, and commitment to returning value to shareholders,&rdquo said Tom van der Lee, group chief financial officer.
DFI also expects to improve its return on capital employed to at least 15 per cent by 2028. Revenue from organic subsidiaries is projected to grow by an average of 2 to 3 per cent annually through 2028, supported by increased store sales density, operational efficiencies and market share gains.
To achieve its 2028 ambitions, DFI identified several strategic priorities, including plans to expand its health and beauty and convenience store networks.
Other key initiatives include increasing store sales density, launching more own-brand products, and leveraging customer data insights to help expand e-commerce and monetise retail media. The group targets an online sales mix of 7 to 10 per cent by 2028.
Scott Price, group chief executive, stated that the company is &ldquo uniquely positioned to deliver sustained, profitable growth&rdquo .
&ldquo Customers across Asia are increasingly seeking quality and convenience at great value,&rdquo Price said. &ldquo Our strong balance sheet and disciplined use of capital give us the flexibility to invest in growth while consistently increasing returns to shareholders in the years ahead.&rdquo
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Southmouse
Member |
12-Nov-2025 10:06
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Interesting read :
"DFI has achieved profitability in its e-commerce segment, and management is pursuing an "accretive digital ecosystem" by integrating profitable e-commerce, retail media, and loyalty data/AI initiatives. This positions DFI to benefit from rising adoption of digital payments and omni-channel retailing in Asia, likely supporting both revenue growth and net margin improvement as scale and personalization increase." https://share.google/aLqNDFWBVi44grfGj |
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Alexch
Member |
19-Sep-2025 15:33
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Totally makes sense, thanks
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JAMMIE
Member |
19-Sep-2025 14:24
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This is a typical sell the news event markert reaction to Fed interest rate cut decision. If you hold conviction in the stock then its a good time to add. Infact there are other counters too which are dropping, but in months to come almost al lthese counters are going to post very good results.
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Alexch
Member |
19-Sep-2025 13:48
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Why drop today? Any news? Sheesh.. 110 already | ||||
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moneycykle
Member |
28-Jul-2025 16:07
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DFI Retail Group Holdings (SGX:D01) Intrinsic Value: Projected FCF : $6.49 (As Of Jul. 25, 2025) View and export this data going
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moneycykle
Member |
28-Jul-2025 15:56
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