Broker: CGS International
Date of Report: April 22, 2026
Excerpt from CGS International report.
Report Summary
- Stock: DFI Retail Group (DFI SP)
- Action: ADD (Buy)
- Target Price: US\$5.50
- Current Price (at report date): US\$4.16
- Upside: 32.2%
- Key Idea: DFI Retail Group delivered strong 1Q26 results with 49% year-on-year underlying net profit growth, outpacing expectations. The company reaffirmed its FY26 guidance with 2-3% organic revenue growth, US\$270m-300m underlying net profit, and a 70% dividend payout ratio. Margins are seen as resilient despite competitive pressures in Health & Beauty, supported by cost optimization and improved sales mix.
- Potential M&A: Any acquisition of ParknShop would need to be at a significant discount due to its low-margin profile and recent operating losses.
- Catalysts: Accretive M&A and faster store openings could drive further re-rating.
- Risks: Prolonged macroeconomic weakness and increased competition affecting margins.
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
