Broker Name: CGS International
Date of Report: June 2, 2025

DFI Retail Group Holdings Ltd: Uptrend Momentum and Strategic Asset Monetisation Signal Strong Growth Potential

Market Overview: US Jobs and Global Economic Sentiment

Global economic dynamics are shifting as US hiring growth shows signs of moderation. In May, US payrolls are expected to rise by 125,000, following stronger-than-anticipated job growth in March and April. This would bring the three-month average to a robust 162,000, with the unemployment rate projected to hold steady at 4.2%. However, businesses are exercising greater caution amid evolving US trade policy, with increased focus on cost-containment as consumer spending softens and auto sales data signals a second consecutive monthly decline. Friday’s jobs data will be closely watched, following a projected drop in job openings to 7.1 million in April—the lowest since late 2020. This environment is fostering a more conservative approach to hiring and investment across industries.

DFI Retail Group Holdings Ltd: Strategic Asset Divestment and Technical Uptrend

Recent Asset Monetisation Highlights

• Robinsons Retail Holdings Divestment: DFI Retail Group has completed the sale of its 22.2% stake in Robinsons Retail Holdings for approximately US\$283 million. This transaction was executed at an implied valuation of 11.2x FY24 price-to-earnings, deemed fair by analysts.
• Total Asset Divestiture Since 2024: The company has monetized around US\$1.2 billion in major assets since 2024. Key divestments include PT Hero Indonesia, Yonghui Superstores, and most recently, Cold Storage Singapore.
• Outlook and Valuation: DFI Retail Group maintains an “Add” rating with a target price (TP) of S\$3.00. This valuation is based on 14.6x FY26 P/E, positioned 0.5 standard deviations below the five-year historical average. Analysts point to further earnings improvement and the potential for a special dividend as key catalysts for the stock.

Technical Analysis: Bullish Trend Confirmed

DFI Retail Group Holdings has delivered a strong technical performance, confirming an ongoing uptrend that began in August 2024. The company’s stock reached the second target price of S\$2.75, as anticipated in previous analyses. Key technical signals supporting this bullish outlook include:

• Flag Formation Breakout: The stock price has broken out of a flag formation, confirming the continuation of the upward trend.
• Support and Resistance Levels:
  • Last Price: S\$2.76
  • Entry Prices: S\$2.76, S\$2.60, S\$2.45
  • Support 1: S\$2.61 | Support 2: S\$2.24
  • Stop Loss: S\$2.23
  • Resistance 1: S\$2.88 | Resistance 2: S\$3.05
  • Target Prices: S\$3.08, S\$3.17, S\$3.30, S\$3.80
• Technical Indicators:
  • Price remains above all Ichimoku indicators, reinforcing the bullish bias.
  • MACD and signal lines are rising and remain above the zero line, with a positive histogram.
  • Stochastic Oscillator continues to rise, indicating persistent momentum.
  • 23-period Rate of Change (ROC) has rebounded, supporting further upside.
  • Volume has surged above the 20-period average, demonstrating strong bullish participation.

Company Profile: DFI Retail Group Holdings Ltd

DFI Retail Group Holdings Ltd is a leading retail conglomerate in Asia, operating supermarkets, drugstores, and convenience stores through its subsidiaries. Its strategic asset management and focus on operational efficiency have positioned it as a key player in the region’s retail sector.

Analyst Recommendation and Target Prices

• Primary Analyst: CHUA Wei Ren, CMT
• Contact: [email protected]
• Recommendation: Retain “Add”
• Target Price: S\$3.00 (based on 14.6x FY26 P/E)
• Key Catalysts: Earnings improvement and special dividend potential

DFI Retail Group Holdings Ltd: Technical Buy Snapshot

Comprehensive Risk and Disclosure Statements

Investors should note that the report provides general information only and does not constitute a recommendation or offer to buy or sell securities. The outlook for DFI Retail Group Holdings Ltd is based on current market data and reasonable assumptions as of the date of the report. Potential investors are advised to independently assess their investment objectives and consult professional advisers before making any investment decision.

The report includes comprehensive regional and jurisdictional disclaimers, highlighting that the information is intended solely for institutional, accredited, or professional investors as defined by relevant regulations. CGS International and its affiliates may have positions or business relationships with companies mentioned in the report.

Stock Ratings Framework

• Add: Total return expected to exceed 10% over the next 12 months
• Hold: Total return expected between 0% and +10% over 12 months
• Reduce: Total return expected to fall below 0% over 12 months

As of the most recent quarter, 71.0% of covered stocks are rated “Add”, 20.9% “Hold”, and 8.2% “Reduce”. Investment banking clients comprise a small minority of these rated stocks, reflecting a strong commitment to independent research.

Conclusion: DFI Retail Group Holdings Positioned for Continued Uptrend

With its strategic asset monetisation totaling US\$1.2 billion since 2024, a confirmed technical uptrend, and robust support from key technical indicators, DFI Retail Group Holdings Ltd stands out as a prime candidate for investors seeking growth in Asia’s retail sector. CGS International retains a positive outlook on the stock, highlighting both near-term earnings momentum and the prospect of special dividends as compelling reasons for investors to consider further exposure.