Broker Name: CGS International
Date of Report: March 12, 2026
Excerpt from CGS International report.
- Report Summary
- CGS International hosted a non-deal roadshow (NDR) for DFI Retail Group, increasing confidence in DFI’s execution capabilities and prompting a higher target price of US\$5.50.
- DFI is driving customer footfall through innovation, such as tech-based skin and scalp assessments at Guardian and collaborations with IP owners to sell collectibles in 7-Eleven stores.
- The company’s flexible, multi-country sourcing helps protect margins amid geopolitical volatility, supporting price-conscious customers without heavy cost pass-throughs.
- DFI is prioritizing the scaling of its retail media business, targeting 1% of FY28F revenues with high operating margins and significant expansion of in-store screens.
- The group is piloting Guardian franchise stores in Indonesia, planning rapid growth there before potentially expanding to Vietnam, which is seen as a key future market.
- After recent divestments, DFI does not plan further major asset sales, instead focusing on profit-driven ROCE improvements and leveraging its multi-format ecosystem, especially in Hong Kong.
- DFI’s ESG strategy includes halving carbon emissions by 2030 and achieving net zero by 2050, with ongoing investments and improved disclosure practices.
- Key risks identified are prolonged macroeconomic weakness and competitive pressures on margins.
- The report reiterates an “Add” rating, reflecting strong execution, growth visibility, and possible M&A catalysts.
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
