First Read DFI Retail Group: 1H26 results beat; raise full-year guidance by 3%

研报英文原文证据摘录

First Read DFI Retail Group: 1H26 results beat; raise full-year guidance by 3%

Global Research

28 July 2026ab

First Read

EquitiesDFI Retail Group

1H26 results beat; raise full-year guidance by Singapore

3% Retailers, Broadline

12-month rating Buy

12m price target US$4.90

RMB appreciation, SG&A cost cut and IKEA turnaround

DFI Retail reported 1H26 underlying profit of US$117mn, up 11% YoY or up 44%

YoY from continuing business. This is 11% ahead of our estimate, mainly driven by a Price (28 Jul 2026) US$3.52

29% decline in SG&A. The company declared an interim ordinary DPS of USc6.20, RIC: DFIR.SI BBG: DFI SP

implying a payout ratio of 71% and consistent with the 70% dividend policy announced

Trading data and key metrics

in Dec 2025. Despite oil price volatility, the company has revised up its full-year guidance

for underlying profit to US$285-305mn (previously US$270-300mn) and organic 52-wk range US$4.75-3.11

revenue growth to 3-4% (previously 2-3%). We attribute the results beat to: 1) Rmb Market cap. US$4.76b

appreciation, which narrowed the price gap between HK and Greater Bay Area for Food Shares o/s 1,354m (ORD)

business, and translation gain for its Convenience business in South China; 2) SG&A Free float 22%

savings; and 3) a recovery in IKEA business, due to HK property market recovery. Avg. daily volume ('000) 1,182

Avg. daily value (m) US$4.5

Robust sales momentum in H&B; Significant recovery at Home Furnishings Common s/h equity (12/26E) US$0.38b

LFL Sales growth in H&B remained robust at 6% (See Figure 2DFI'squarterlyLFLsalesgrowthbysegment), with Hong Kong & P/BV (12/26E) 12.6x

Macau growing 5% and Southeast Asia leading at 9%, driven by close to 20% LFL Net debt to EBITDA (12/26E) NM

growth in Indonesia and Vietnam on higher basket sizes.