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Delfi
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Chasen Hldg
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yuhanooi
Member |
29-Mar-2023 16:50
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Pull back is buying opportunity...dyodd
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pcxiao2008
Master |
29-Mar-2023 16:47
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can close 1.16 today? | ||
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Elf2000
Elite |
28-Mar-2023 10:53
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Might be another pull back again... | ||
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TradingMao
Member |
27-Mar-2023 20:02
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Last 2 weeks pull back with low volume. Last fri and today buyers came in with bigger volume. Slowly moving up. Just hold on to this gem. Meanwhile, collect dividends in may. | ||
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Joelton
Supreme |
21-Mar-2023 09:56
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Strong demand for sweet treats: Analysts at Lim & Tan Securities lift Delfi&rsquo s TP
Lim & Tan Securities analyst Chan En Jie has kept his &ldquo buy&rdquo call on Delfi Limited P34 0.97% with a higher target price of $1.48 from $1.20 previously. The new target price is pegged to 14.8x of Delfi&rsquo s FY2023 P/E or at a 15% discount to its five-year average P/E.
In his report dated March 17, Chan&rsquo s optimism towards the chocolate confectionery maker is backed by their steady recovery from the pandemic as both top and bottom lines surpassed pre-pandemic FY2019.
During the FY2022 ended Dec 31, 2022, Delfi Limited remained the &ldquo undisputed market leader of chocolate confectionery products in Indonesia&rdquo after its profit rose by 49.9% y-o-y to US$43.9 million ($59.1 million). Delfi&rsquo s revenue for the year grew by 19.2% y-o-y to US$483.0 million.
&ldquo Premium brands &lsquo SilverQueen&rsquo and &lsquo Cha Cha&rsquo have grown by double-digits in FY2022, and sales in Indonesia (+17.5% y-o-y) were supported by the launch of [over seven] healthy snacks (August 2022) and Van Houten Vegan series (September 2022),&rdquo says Chan.
&ldquo Delfi&rsquo s huge increase in inventory levels of US$50.6 million signals management&rsquo s optimism of a FY2023 outperformance as they invest more working capital to meet higher anticipated sales,&rdquo he adds.
Looking ahead, Chan is optimistic that Delfi Limited will see a &ldquo stronger&rdquo FY2023 ahead. In his interview with Delfi, the group explained that it expects to see &ldquo strong sales&rdquo in FY2023 after it reported a huge increase in its inventory levels to US$115.5 million as at end-FY2022 from FY2021&rsquo s US$64.8 million.
To this end, Chan has upped his FY2023 sales and earnings projections by 6.7% and 26.2% respectively on the back of a full recovery this year and strong GDP growth in Delfi&rsquo s key markets.
Further to his report, Chan sees other factors that support his upbeat outlook.
First, the removal of pandemic restrictions in Delfi&rsquo s key market, Indonesia, will provide an uplift to consumer demand.
Next, the group&rsquo s &ldquo premiumisation&rdquo will bode well for its margins as its premium products such as SilverQueen and Van Houten provide higher margins than projects from Delfi&rsquo s value segment.
The willingness to indulge in premium treats in Delfi&rsquo s key markets of Indonesia and the Philippines will have a &ldquo positive long-term impact on the consumption of chocolate confectioneries,&rdquo says Chan.
&ldquo In addition, Delfi&rsquo s strong branding allows it the flexibility of resizing and/or price adjustments of its premium products,&rdquo he adds.
Delfi&rsquo s &ldquo unparalleled distribution network&rdquo is still unappreciated by market watchers, the analyst notes. In his report, Chan highlights a potential for further market expansion of Delfi in Indonesia. Although Delfi is a market leader in Indonesia with a market share of over 40%, its yearly consumption per capita is only 300g, as compared to 2kg per capita of consumption in Singapore.
&ldquo Delfi remains committed to continue expanding its logistics platform to enhance its reach in major cities and remote areas,&rdquo says Chan.
Finally, the increasing distributions from the group signals confidence from its management. Since its listing in 2004, Delfi has had a steady track record in paying out dividends, which Chan believes they will continue doing so going forward.
&ldquo The dividends dished out by Delfi have been on a rising trend since FY2017, with a consistent 50-60% payout ratio over the years,&rdquo he says.
However, Chan cautions that the payout ratio may return to 50% in FY2023/FY2024, as compared to 60% in FY2022, as Delfi invests into more expansionary capex moving forward.
At its current share price levels, Delfi is trading at an attractive valuation of 10.4x FY2023 P/E compared to its 5-year average P/E of 17.5x and its peers average P/E of 23.6x.
&ldquo With both FY2022 top and bottom line at its highest since 2015, we continue to see sustained growth in FY2023/FY2024 as consumer optimism emerge from the first full years without major pandemic restrictions,&rdquo says Chan.
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SmallSmall
Supreme |
16-Mar-2023 09:48
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First Pacific Advisors selling. They sold 345,700 @ avg $1.0755 (SGD 371,800.35) From 42,889,210 (7.018%) to 42,543,510 (6.961%) |
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Elf2000
Elite |
08-Mar-2023 08:50
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Is a good sign...
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iinvestor
Veteran |
08-Mar-2023 08:41
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Short term leeches getting off lah
The smart ones are holding and adding from below $1...this one is a gem. CEO eat his own chocolate and buy his own shares. |
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muifan
Supreme |
07-Mar-2023 20:34
Yells: "Take the leap of faith dont regret 20 years later!" |
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today closing married 562,200 shares at $1.117... if buyer is CEO again, might propel the share beyond $1.50... |
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ozone2002
Supreme |
07-Mar-2023 20:15
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Last:1.11  +0.03lots of distribution taking place Smart money selling off to retailers |
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Joelton
Supreme |
07-Mar-2023 09:42
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Analysts lift Delfi Limited' s TP after higher-than-expected FY2022 earnings
Analysts are keeping their &ldquo buy&rdquo calls on Delfi Limited P34 0.00% after the company&rsquo s results for the FY2022 ended Dec 31, 2022, surpassed their expectations.
Delfi&rsquo s FY2022 earnings of US$43.9 million ($59.1 million) surpassed DBS Group Research&rsquo s expectations by 29.3%. Delfi&rsquo s full-year earnings also accounted for 125% of UOB Kay Hian&rsquo s estimates for the FY2022.
The analysts at DBS Group Research and UOB Kay Hian have also lifted their target prices with DBS&rsquo s new target price at $1.52 from $1.31 previously. UOB Kay Hian&rsquo s target price has been lifted to $1.71 from $1.42 previously.
&ldquo Our target price is pegged to 14.5x FY2023 earnings based on -1.5 standard deviation (s.d.) of its five-year mean historical P/E,&rdquo writes DBS analyst Andy Sim.
&ldquo We expect 53% upside as the valuation re-rates towards its five-year historical average, which we believe will happen when investors are convinced that the business is back on a growth trajectory and delivering on shareholder returns,&rdquo he adds.
UOB Kay Hian&rsquo s new target price is based on an FY2023 P/E of 17x, which is pegged to its long-term mean, say analysts John Cheong and Heidi Mo.
To Cheong and Mo, Delfi&rsquo s two business lines, own brands and agency brands, displayed a &ldquo solid performance&rdquo across all its markets in FY2022.
&ldquo Overall, own brands and agency brands recorded respective increases in sales of 19.0% and 19.6% yoy. In particular, Indonesia&rsquo s growth in revenue is attributable to Delfi&rsquo s premium brands SilverQueen and Cha Cha, which both saw double-digit growths. New products, largely healthier snacks targeting millennials and Gen-Zs, were also launched during the year, supporting the segment&rsquo s revenue growth,&rdquo they write.
During the year, Delfi also reported a &ldquo healthy balance sheet&rdquo of US$58 million and positive operating cash flow, which the analysts like.
&ldquo Having scaled down long-term borrowings since FY2015, Delfi had zero long-term debt obligations as at end-FY2022. The group does however have short-term borrowings that are mainly used for financing the working capital to purchase cocoa beans,&rdquo the analysts note.
&ldquo We think Delfi&rsquo s healthy balance sheet and positive operating cash flow provide the group with a large enough cash buffer to weather any tough conditions,&rdquo they add.
Further to their report, UOB Kay Hian&rsquo s Cheong and Mo say they expect to see &ldquo steady earnings growth&rdquo as Indonesia&rsquo s consumers &ldquo emerge stronger&rdquo from the pandemic.
&ldquo We expect Delfi&rsquo s revenue from the Indonesia market to grow 10% in FY2023 to FY2025 as Indonesia&rsquo s economy and consumers emerge stronger after the pandemic. Bank Indonesia projects Indonesia&rsquo s economy to grow 4.9% in 2023 and 5.1% in 2024. For 2022, Indonesia&rsquo s economy grew 5.3%, a solid recovery from the pandemic years where the economy contracted by 2.1% in 2020 and grew by only 3.7% in 2021. Increasing health consciousness and a surge in disposable income are seen to be the growth drivers,&rdquo they write.
To this end, Cheong and Mo have lifted their earnings estimates for the FY2023 and FY2024 by 22% and 18% to $47 million and $50 million respectively.
&ldquo These figures reflect the strong performance recorded in 2022 and improving margins moving forward,&rdquo they say.
To DBS&rsquo s Sim, Delfi&rsquo s market dominance in the chocolate confectionery market in Indonesia, which is a result of its extensive distribution network, is &ldquo impressive&rdquo given the geographical challenges in the Indonesian market.
Looking ahead, the analyst expects Delfi&rsquo s ebitda margins to remain at around 15% with &ldquo higher input costs offset by [an] product mix of premium offerings&rdquo .
&ldquo With a majority of the Group&rsquo s products catering to the mid-upper income, we expect demand to remain resilient while it extends its reach in the premium category and introduces more products in the healthy snacks category targeting millennials and Gen-Z consumers,&rdquo says Sim.
As Indonesia&rsquo s GDP is expected to register a growth of 5% for 2023 with consumer confidence on the path to recovery from the pandemic, Sim expects the buoyant sentiment to drive higher chocolate consumption.
Domestic consumption could also see a boost in the lead-up to Indonesia&rsquo s election in February 2024, he adds.
In Sim&rsquo s view, Delfi&rsquo s management is confident that FY2023 will be a &ldquo very strong year&rdquo for the company given the substantial increase in inventory levels.
&ldquo However, this is something to watch for given potential risk of inventory write-offs should demand fall short of expectations,&rdquo he says.
&ldquo Management indicated that they have been able to push more products to distributors ahead of the first Valentine&rsquo s Day and Lebaran without Covid restrictions in three years. We remain optimistic, but watchful of potential significant distributor returns and write-offs should end-demand be lacklustre,&rdquo he adds.
Like his peers at UOB Kay Hian, DBS&rsquo s Sim has also upped his FY2023 and FY2024 earnings estimates by 31.8% and 32.1% respectively.
&ldquo We revised our earnings up significantly on the back of blowout FY2022 earnings. We expect earnings growth to taper from a record FY2022 with lower gross margin due to higher input costs. Net margin should also come off from a flow through of lower gross margin and higher dividend withholding taxes,&rdquo he writes.
Sim&rsquo s estimates for Delfi&rsquo s FY2023 and FY2024 revenue was also increased by 12.3% and 11.4% respectively.
&ldquo We revised our revenue projection up on back of cautious optimism on sustained demand growth for chocolate especially in Indonesia, as chocolate consumption remains underpenetrated, suggesting untapped market potential,&rdquo he adds.
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iinvestor
Veteran |
06-Mar-2023 23:28
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holding v strong at 108...just get ready for 2nd leg up. sweet... |
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TradingMao
Member |
06-Mar-2023 23:03
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UOB Kay Hian 2023-03-03: Adding Delfi
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Elf2000
Elite |
01-Mar-2023 11:28
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Will re-enter once pullback👍 | ||
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iinvestor
Veteran |
01-Mar-2023 10:47
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Very strong turn around...generous boss.  Life is like a box of Delfi chocolates |
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Joelton
Supreme |
28-Feb-2023 10:20
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Delfi H2 earnings up 44% to US$24.5 million proposes special dividend
CHOCOLATE company Delfi : P34 +1.09%on Monday (Feb 27) posted earnings of US$24.5 million for the second half of 2022, up 44.4 per cent from earnings of US$17 million for the same period in 2021.
Revenue for H2 was up 21.6 per cent to US$236.7 million from US$194.6 million. Revenue contributions from the Indonesia market were up 19.1 per cent to US$150.3 million, while contributions from its regional markets were up 26.3 per cent to US$86.4 million.
Among regional markets, Delfi&rsquo s revenue from Malaysia and the Philippines were up year on year, while contributions from Singapore and other countries were down.
For H2, the company&rsquo s cost of sales rose 18.3 per cent to US$160.9 million from US$135.9 million.
The board of directors has proposed a final dividend of US$0.02 per share and a special dividend of US$0.0072 per share. If approved by the company&rsquo s shareholders at the annual general meeting on Apr 25, the final and special dividends will be paid out on May 15.
For FY2022, the company&rsquo s earnings were up 49.9 per cent to US$43.9 million. Revenue rose 19.2 per cent to US$483 million.
Delfi attributed the stronger FY2022 performance to high growth in its premium format segment, strong performance of both its own brands and agency brands, higher gross profit margins and continued tight control of operating costs.
Looking ahead, the company said it is unclear how the continued global economic uncertainties from political tensions, rising interest rates, currency volatility and lingering inflationary pressures will weigh on economic growth. These macroeconomic uncertainties could also weigh on consumer confidence going forward, the company said.
Delfi said it can mitigate many of these potential risks by focusing on growing its core strategic products and driving further growth in its premium format category, bringing new premium products to market, and tightly managing its operating costs, collections and working capital.
Although the group expects to have higher working capital requirements to support future business growth, it said it will remain vigilant and tightly manage appropriate levels of receivables, inventories, and payables.
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Elf2000
Elite |
28-Feb-2023 09:40
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Crossing over $1.00 soon... | ||
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Elf2000
Elite |
28-Feb-2023 09:29
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$1.42!!! | ||
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chiachiawee
Elite |
27-Feb-2023 23:54
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Solid result. Uptrend. 2022 full year EPS USD0.0718, around SGD0.096. Declared final dividend of SGD0.0264 and special dividend of SGD0.0095. Trading at 9x 2022 PE. Peers trading at 20x PE as per fund houses report. Uptrend with better upside. On track to achieve various TP by houses ranging from 1.26 to 1.42. DYODD. Cheers. | ||
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Joelton
Supreme |
16-Feb-2023 09:46
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Lim & Tan Securities initiates coverage on Delfi with &lsquo buy&rsquo
LIM & Tan Securities has initiated &ldquo buy&rdquo on Delfi : P34 +0.57% with a target price of S$1.20, on the confectionary company&rsquo s attractive valuations and strong net cash position.
The target price on the stock is pegged to 15.8 times of the brokerage&rsquo s estimates for FY2022 earnings. It is also at a 30 per cent discount of the group&rsquo s six-year average price-to-earnings ratio of 22.5 times.
In a report on Wednesday (Feb 15), Lim & Tan analysts noted that Delfi trades at an &ldquo undemanding&rdquo valuation of 11.5 times of the brokerage&rsquo s estimated FY2022 earnings, compared with its industry peers. The research team also noted the group&rsquo s &ldquo attractive&rdquo dividend yield of 4.4 per cent.
It also said Delfi remains &ldquo relatively shielded&rdquo from the hawkish interest rate environment with a strong net cash position of US$67.3 million, which gives the group room for potential acquisitions or expansion into new markets.
There is also growth potential in the Indonesia market. Delfi benefits from a strong foothold with first-mover advantage and a loyal customer base in Indonesia, where heavyweights such as Cadbury and Nestle have not been able to penetrate.
The analysts also like the stock for its extensive distribution network, which covers close to 100 per cent of modern trade in Indonesia with &ldquo excellent reach&rdquo into the country&rsquo s rural areas.
This provides Delfi with additional revenue streams, as the group&rsquo s distribution expertise and robust supply chain are highly sought after by more than 100 agency brands including Kellogg&rsquo s, Pringles and Loacker.
Furthermore, the group&rsquo s shift into new packaging designs and chocolates production to cater to the newer generation will be beneficial in coming years.
&ldquo Positive trends such as a young population and growing disposable income will continue to propel revenue growth for Delfi&rsquo s range of chocolate products,&rdquo Lim & Tan said.
The research team noted that Delfi chief executive officer John Chuang&rsquo s recent married deal, where he bought 2.5 million shares at an average price of S$0.78 apiece, also indicates continued confidence in the group&rsquo s prospects, as well as its attractive share price.
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