Lift FY26F/27F earnings by 4%/7% on higher margins.
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1H26 segmental margins in the Health & Beauty and Convenience segments declined y-o-y, coming in below expectations due to intensifying competition in Malaysia and South China, respectively. However, we believe management has several levers to drive a stronger 2H26 performance, including improving the product mix through higher Own Brand penetration and optimising pricing and marketing investments. In addition, we see higher than expected head office cost savings, driven by cost reallocation to operating segments and strong execution. Management also continues to identify further scope for cost savings in the coming years.
Continued discipline in M&A.
- 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/.
Zheng Feng Chee DBS Group Research | https://www.dbs.com/insightsdirect/ 2026-07-30
Previous report by DBS:
2026-07-01 DFI Retail - Acquisition To Fuel Its Retail Media Ambition.
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
