UOB Kay Hian
Date of Report: 21 August 2025
Dezign Format Group: Poised for Accelerated Growth in the Booming MICE and Experiential Events Market
Dezign Format Group: Initiation of Coverage with BUY Recommendation
Investment Highlights
Dezign Format Group (DFG) has emerged as a formidable player in the events, exhibitions, and décor services industry, leveraging over 35 years of experience and a robust, asset-light business model. UOB Kay Hian initiates coverage with a BUY rating and a target price of S$0.370, representing a 21.3% upside from the current share price of S$0.305. DFG is well-positioned to capitalize on the rising demand for Meetings, Incentives, Conferences, and Exhibitions (MICE), as well as the growing popularity of experiential and immersive events.
Company Overview: Turning Vision Into Value
DFG operates as a comprehensive event management company, delivering design, fabrication, installation, and project management services for a diverse client base. Its service portfolio spans:
Custom environments and festive decorations
Museum and gallery installations
Brand activation and experiential marketing
Immersive location-based entertainment (LBE)
Commercial and retail fit-out works
The company boasts an impressive roster of clients, including global brands such as Burberry, Dior, Gucci, LVMH, DBS, Singapore Airlines, and IKEA. Notable projects completed recently include the Marina Bay Sands Lunar New Year 2024, IKEA Alexandra Store Interior Fit-Out, and DinoQuest at Guixi Ecological Park in Chengdu, China.
Growth Drivers: Riding the Experiential Wave
DFG’s revenue and earnings have seen stellar growth, with a two-year CAGR of 35% and 77% respectively (2022-2024). The company’s healthy orderbook (S$24 million as of 31 Dec 2024) underpins expected core earnings growth of 20% in 2025 and 16% in 2026. Key growth catalysts include:
Continued expansion of Singapore’s MICE sector
Rising demand for experiential and immersive events
Launch of new VR-related immersive LBE projects
Operational and cost efficiencies from a new Malaysia production hub, scheduled to commence by end-2025
Financial Performance and Projections
DFG’s asset-light, integrated operations have translated into superior financial metrics:
Net margins of 13-15%
Return on equity (ROE) above 35% over the past two years
Strong operating cash flows (S$5.9m in 2024; S$6.1m in 2025)
Net cash position projected at ~S$11.2m by August 2025, including S$4.8m in IPO proceeds (about 18% of market cap)

Strong Balance Sheet Enables Sustainable Dividends
DFG’s financial prudence is evident in its strong cash position (S$7.5m as of end-2024, excluding IPO proceeds) and a sharp drop in debt-to-equity ratio from 48.8% in 2022 to just 10.6% in 2024. The management has committed to a dividend payout of at least 30% of PATMI for FY25-26, supporting an estimated 2026 dividend yield of 3.4%.
Expanding Into Immersive Entertainment: The Next Growth Leg
DFG is moving aggressively into the high-value LBE segment, developing proprietary intellectual properties (IPs) and partnering for broader revenue streams (licensing, merchandising, ticketed attractions, collaborations). In January 2025, DFG signed a partnership with a China-based company to roll out VR LBE projects across Southeast Asia. The May 2024 launch of “Immersive Realms” further strengthens its LBE offerings, with the first VR prototype scheduled for completion by end-2025.
Orderbook and Earnings Visibility
As of 31 December 2024, DFG had an orderbook of S$24 million, with S$10.5 million recognized in Q1 2025, providing strong near-term revenue visibility. Core PATMI is projected to rise at a three-year CAGR of 16.2%, from S$5.0m in 2024 to S$7.9m in 2027, fueled by robust order inflows and expansion of the LBE segment.
Valuation and Peer Comparison
DFG’s target price of S$0.37 is based on 10.5x 2026F PE, which is a conservative 10% discount to the peer average (11.4x). DFG currently trades at just 8.8x 2026F PE, about a 25% discount, despite its superior fundamentals.

Key Risks and Share Price Catalysts
Risks:
Any slowdown in order inflows or weaker-than-expected demand for MICE/experiential events could impact growth projections.
Execution risks in the rollout of new LBE projects and regional expansion.
Catalysts:
Stronger-than-expected order wins
Successful entry into new regional markets
Conclusion: Dezign Format Group — A Compelling Play in Experiential Events
DFG stands out as a high-growth, high-margin, and cash-generative company with substantial earnings visibility and a strong balance sheet. With the global MICE industry poised for growth and a pivot towards immersive experiences, DFG is uniquely positioned for sustained value creation. The current valuation offers an attractive entry point for investors seeking exposure to the future of events, exhibitions, and experiential marketing.