Company Coverage
DFI Retail Group (DFI SP): 1H26: Underlying Growth Intact; Temporary Top-Line Weakness From Divestment
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
US$3.58
US$5.20
+45.3%
US$5.60
Analyst
Highlights
Excluding divestment impact, DFI’s 1H26 revenue of US$4.1b and PATMI of S$117.7m represent around 51%/44% of our 2026F forecasts respectively.
Continuing businesses remain resilient, with stronger LFL sales and underlying profit growth supported by an improving business mix.
Maintain BUY with a lower target price of US$5.20 implying 45% upside, pegged to 24x 2027F PE, in-line with historical mean.
Analysis
Underlying growth intact despite seemingly weaker top-line. DFI Retail Group (DFI) reported 1H26 revenue of US$4.1b (-6% yoy) and 1H26 PATMI of S$117.7m (1H25: net loss of US$38.0m), representing 47% & 42% of our 2026F forecasts respectively. This underperformance was due to the absence of sales from the Singapore Food Business that DFI divested at the end of 2025 (not yet reflected in our previous forecasts). Excluding divestment impact, revenue and PATMI make up approximately 51%/44% of our forecasts respectively. This has been reflected in our new forecasts going forward. We expected DFI’s continuing business to display continued growth and momentum, with seasonality support in 2H26.
Continuing business continued to demonstrate growth. In 1H26, like-for like (LFL) subsidiary sales growth from continuing businesses improved to 3% yoy (+4% yoy), while underlying profit from continuing businesses grew 44% yoy to US$117m. In our forecasts, we expect continuing business to grow 3% yoy, and see net margin improving yoy as DFI’s business mix improves.
Highlights
Excluding divestment impact, DFI’s 1H26 revenue of US$4.1b and PATMI of S$117.7m represent around 51%/44% of our 2026F forecasts respectively.
Continuing businesses remain resilient, with stronger LFL sales and underlying profit growth supported by an improving business mix.
Maintain BUY with a lower target price of US$5.20 implying 45% upside, pegged to 24x 2027F PE, in-line with historical mean.
Analysis
Underlying growth intact despite seemingly weaker top-line. DFI Retail Group (DFI) reported 1H26 revenue of US$4.1b (-6% yoy) and 1H26 PATMI of S$117.7m (1H25: net loss of US$38.0m), representing 47% & 42% of our 2026F forecasts respectively. This underperformance was due to the absence of sales from the Singapore Food Business that DFI divested at the end of 2025 (not yet reflected in our previous forecasts). Excluding divestment impact, revenue and PATMI make up approximately 51%/44% of our forecasts respectively. This has been reflected in our new forecasts going forward. We expected DFI’s continuing business to display continued growth and momentum, with seasonality support in 2H26.
Continuing business continued to demonstrate growth. In 1H26, like-for like (LFL) subsidiary sales growth from continuing businesses improved to 3% yoy (+4% yoy), while underlying profit from continuing businesses grew 44% yoy to US$117m. In our forecasts, we expect continuing business to grow 3% yoy, and see net margin improving yoy as DFI’s business mix improves.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
US$3.58
US$5.20
+45.3%
US$5.60
Analyst
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