Delfi’s 1H23 profit of US$25.2m (+30.1% y-o-y) was within expectations, forming 55% of our full-year forecast. The strong 21.5% y-o-y growth in regional markets’ sales mainly contributed to the 16.2% y-o-y increase in revenue.
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Maintain BUY recommendation on Delfi with a 7% higher target price of S$1.83 (S$1.71 previously).
1H23 results in line with expectations, dividend payout ratio maintained.
Delfi (SGX:P34) reported 1H23 revenue and profit of US$286.2m (+16.2% y-o-y) and US$25.2m (+30.1% y-o-y) respectively, both making up roughly 55% of our full-year forecast. As 1Q performance is generally stronger with festivities such as Valentine’s Day and Lebaran, its results are within our expectations.
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Overall, gross profit margin expanded 0.6ppt y-o-y to 30%, on the back of a more favourable sales mix and pricing adjustments, while EBITDA improved by 15.6% y-o-y due to increased sales.
Management has declared an interim dividend of 2.73 cents/share, 25.2% higher than the 2.18 cents/share in 1H22, and in line with its practice of a 50% payout ratio. See Delfi's dividend date.
Elevated inventory levels and solid operating cash flow.
Read more at SGinvestors.io.
Above is an excerpt from a report by UOB Kay Hian Research. Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.
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