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 Highlights:
- 1Q26 underlying net profit grew 49% year-on-year, ahead of expectations. Management reaffirmed FY26 guidance: 2-3% organic revenue growth, US\$270m-300m underlying net profit, and 70% dividend payout ratio.
- Margins likely remained resilient despite competitive pressures, with operating profit growth outpacing revenue in most segments except Health & Beauty in Malaysia.
- DFI is expected to remain disciplined on M&A, with potential interest in acquiring ParknShop only if at a deep discount due to ParknShop’s operating losses.
- Major catalysts: Accretive M&A and faster store openings. Downside risks: Prolonged macro weakness and competition impacting 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
