Broker: CGS International
Date of Report: April 22, 2026
Excerpt from CGS International report.
Report Summary
- Stock: DFI Retail Group (DFI SP)
- Action: Add (Reiterate)
- Target Price: US\$5.50 (32.2% upside from current price US\$4.16)
- Key Idea: DFI Retail Group delivered a strong 1Q26 performance, with underlying net profit up 49% year-on-year—well ahead of expectations and the FY26 forecast. The company reaffirmed FY26 guidance, signaling resilience despite macro and war-driven cost pressures.
- Highlights:
- 1Q26 underlying net profit estimated at US\$58m, excluding divestments and closures; 19–20% of full-year forecast achieved.
- Broad-based like-for-like sales growth (+3% overall), led by Health & Beauty (+7% LFL) and Home Furnishing (+4%).
- Margins likely remained resilient except in Malaysia’s H&B segment due to competition.
- DFI maintains a healthy net cash position (US\$56m as of March 2026) and expects disciplined M&A, with a potential ParknShop acquisition only at a steep discount due to ParknShop’s history of operating losses.
- FY26 guidance reiterated: 2–3% organic revenue growth, US\$270–300m underlying net profit, 70% dividend payout ratio.
- Re-rating catalysts: accretive M&A, faster store openings.
- Downside risks: macroeconomic weakness, competitive pressures on margins.
- Ticker: DFI SP
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/sg/en/
