Broker: DBS Group Research
Date of Report: 20 April 2026
Excerpt from DBS Group Research report.
Report Summary
- Stock: DFI Retail Group Holdings Ltd (DFI SP)
- Action: BUY (Maintain)
- Target Price: USD 5.00
- Key Highlights:
- DBS maintains a BUY rating on DFI Retail Group Holdings Ltd with a target price of USD 5.00.
- DFI is considering a potential merger with ParknShop, which could create a supermarket leader in Hong Kong with over 90% market share.
- Valuation is the main hurdle: An acquisition price of USD 300–500mn for ParknShop could yield 10–15% near-term ROCE, but this is much lower than the USD 3–4bn valuation from 2013, making a deal unlikely unless the price is right.
- DBS believes DFI’s management will maintain valuation discipline and only proceed with value-accretive deals, alleviating concerns about overpaying.
- DFI’s forward dividend yield is 14.3% and the forward P/E is 18.4x.
above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can be the first to access the full report from the DBS website : https://www.dbs.com
