Delfi - Committed To Be ‘Better For You’
DELFI LIMITED (SGX:P34)
- In an article on The Edge on 7 Apr 2022, Delfi (SGX:P34)'s CEO Mr John Chuang expressed his interest for the company to expand into China in the long term, although no concrete plans have been laid out.
- In FY21, Delfi improved its cash position from US$65.5m to US$86.2m while paring down its debt by US$39.3m. We think Delfi’s liquidity will remain ample even if it decides to undertake expansionary capex in FY22F.
- 1Q22F will be a good litmus test for post-COVID demand and we expect Delfi’s strong sales momentum from 4Q21 to be carried into 1Q22F, driven by seasonality factors as well as potential success of its ‘Better for You’ campaign which was only rolled out in regional markets such as the Philippines and Singapore in the later part of FY21.
- We peg our target price of S$1.09 for Delfi on 18x CY23F P/E, 0.5 standard deviation of its 5-year historical average. Delfi is trading at an attractive valuation at 13x 12-month forward P/E with a core dividend yield of ~4%.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
TAY Wee Kuang CGS-CIMB Research | Izabella TAN CGS-CIMB Research | https://www.cgs-cimb.com 2022-04-11
SGX Stock
Analyst Report
1.090
SAME
1.090
Previous report by CGS-CIMB:
2022-02-23 Delfi - A Sweet Treat To End FY21
Relevant links:
Delfi Analyst Report,
Delfi Target Price,
Delfi Share Price History,
Delfi Announcements,
Delfi Dividends/ Corp Actions,
Delfi News Articles