DFI Retail Group - DBS Research 2025-12-04: Improved Visibility On Earnings Trajectory

• DFI Retail (SGX:D01) held its inaugural investor day, where management laid out clear strategies and financial targets for each operating segment. The higher margin Health & Beauty and Convenience businesses are expected to be the main growth engines for both revenue and earnings.
• - Read this at SGinvestors.io -

Health & Beauty and Convenience segments to lead earnings growth.

• Health & Beauty revenue growth will be underpinned by franchise-led store expansion in Indonesia and a stronger push into the fast-growing wellness category. For Convenience, the company is upgrading its higher margin ready-to-eat offering, with expanded fresh hot food offerings and ongoing product innovation.
• It also sees substantial white space for store expansion in Tier 2 cities in South China.

Kept FY26F earnings unchanged with earnings mix to shift towards higher margin segments.

• - Read this at SGinvestors.io -
• Our assumptions sit closer to the lower end of management’s segmental growth and margin expansion guidance, which leaves room for potential upside.

Increase dividend payout ratio from 60% to 70%.

• Read more at SGinvestors.io.

Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2026-03-05 DFI Retail - Underpromising And Overdelivering.

Price targets by 2 other brokers at DFI Retail Target Prices.

Listing of research reports at DFI Retail Analyst Reports.

Relevant links:
DFI Retail Share Price History,
DFI Retail Announcements,
DFI Retail Dividend Payout Dates & Corporate Actions,
DFI Retail News