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We remain positive on Delfi (SGX:P34) despite the higher energy costs, weaker IDR environment, and our lower FY26-28F earnings. While we are now more cautious on margins, we continue to anticipate a strong FY25-28F earnings CAGR of 10%, driven by market penetration in Indonesia as well as in regional markets.
- - Read this at SGinvestors.io -
Anticipating lower margins on higher energy costs.
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We expect Delfi to see lower margins, as we factor in the impact of higher energy prices, whilst cocoa prices remain favourable.
- - Read this at SGinvestors.io -
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Lower gross margins should come from higher upstream cocoa processing costs including energy and freight, while its downstream manufacturing processes should also be impacted by higher fuel costs – both of which should translate to higher input costs, opex, and lower margins.
Weaker IDR translates to <1% change in earnings.
- Read more at SGinvestors.io.
Above is an excerpt from a report by RHB Securities Research.
Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
Alfie Yeo RHB Securities Research | https://www.rhbgroup.com/ 2026-06-15
Previous report by RHB:
2026-04-14 Delfi - Benefitting From Lower Cocoa Prices; Keep BUY.
Price targets by other brokers at Delfi Target Prices.
Listing of research reports at Delfi Analyst Reports.
Relevant links:
Delfi Share Price History,
Delfi Announcements,
Delfi Dividend Payout Dates & Corporate Actions,
Delfi News
