Broker: KGI Securities (Singapore) Pte. Ltd.
Date of Report: April 6, 2026
Excerpt from KGI Securities report.
Report Summary
Stock: Infinity Development Holdings Co Ltd (IDH SP/ZBA.SI)
Action: Initiate OUTPERFORM rating
Target Price: S\$0.62
Current Price (as of 2 Apr 26): S\$0.40
Upside (incl. dividends): 63.1%
Key Highlights:
- Business Model: Infinity is a leading supplier of adhesives, primers, and hardeners to footwear OEMs and factories in Asia, with a sticky, replenishment-driven business model reinforced by long qualification cycles and high switching costs.
- Financial Strength: Strong net cash position (HK\$288.5mn, ~35% of total assets), no structural debt, and stable revenue (FY25: HK\$835mn, net profit: HK\$122mn).
- Growth Drivers: Benefiting from the structural shift of global footwear manufacturing from China to ASEAN (Vietnam, Indonesia), with significant capacity expansion in Indonesia and potential future growth in India.
- Risks: Margin pressure expected in FY26 due to higher petrochemical and freight costs from the Middle East conflict, customer concentration, OEM production cyclicality, and execution risk for the Indonesia expansion.
- Valuation: DCF-based target price of S\$0.62, using a WACC of 8.03%, terminal growth rate of 1.5%, and forward P/E multiple of 4.3x. The valuation reflects conservative assumptions given macro uncertainty.
Actionable Insight: Investors are advised to BUY/OUTPERFORM Infinity Development Holdings with a target price of S\$0.62, representing substantial upside from current levels, supported by strong fundamentals, strategic positioning in ASEAN, and a resilient business model.
above is an excerpt from a report by KGI Securities (Singapore) Pte. Ltd. Clients of KGI Securities (Singapore) Pte. Ltd. can be the first to access the full report from the KGI Securities website : https://www.kgieworld.com.sg/
