Broker Name: CGS International
Date of Report: December 4, 2025
Excerpt from CGS International report.
Report Summary
- DFI Retail Group held its first Investor Day, raising FY28 margin targets and dividend payout ratio to 70%, surprising positively versus previous expectations.
- The broker raised its FY26-27 earnings estimates by 6-10%, with a new target price of US\$4.50, reflecting anticipated margin expansion, higher dividends, and potential net profit growth driven by Health & Beauty and Convenience segments, plus selective M&A activity.
- DFI’s transformation plan includes expanding tech-enabled wellness offerings, franchise network growth (particularly in Indonesia), and a focus on omnichannel digital ecosystems to grow sales and margins.
- Risks remain around competitive pressures in Convenience, slow recovery in Hong Kong, and execution of M&A plans, but the overall outlook is positive, anchored by strong shareholder returns and ongoing ESG improvements.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com/
