Excerpt from DBS Group Research report
Report Summary
- Stock: Delfi Ltd (Ticker: DELFI SP)
- Action: HOLD
- Target Price: SGD 1.00
- Key Idea: Delfi reported 1Q26 EBITDA of USD16.8mn (-0.8% y/y), in line with expectations (28% of FY26F). Net revenue grew 6.2% y/y to USD159mn, led by strong Own Brands growth across Indonesia, Malaysia, and the Philippines. Gross margin declined to 26.6% (from 28% in 1Q25) due to a weaker Indonesian Rupiah and higher cocoa costs. While lower cocoa costs may offer uplift in coming quarters, continued IDR weakness is a risk. The company maintains a strong net cash position of USD77mn.
- Implication: DBS maintains a HOLD rating and a target price of SGD 1.00, preferring to await clearer earnings turnaround before turning positive. Investors are advised to remain on the sidelines pending improved visibility on earnings recovery.
above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can be the first to access the full report from the DBS Group Research website : https://www.dbs.com/markets
