RHB keeps top consumer sector pick Delfi at 'buy' given inexpensive valuation, robust revenue and margins growth

SINGAPORE (May 27): RHB Research is reiterating its strong “buy” call on Delfi with a target price of $1.68, which implies 28 times FY19F P/E and implies 24% upside and 2.5% dividend yield.

This comes after the confectionery manufacturer posted 21.6% y-o-y higher 1Q earnings of $12.6 million on the back of revenue growth and an improved gross margin, post initiatives to cull less-profitable stock keeping units (SKUs) as well as due to higher sales of premium products.

3 top consumer picks revealed as RHB expects sector to outperform ST Index in 2019

SINGAPORE (Jan 4): RHB Research is maintaining its “overweight” rating on the Singapore consumer sector, against the backdrop of a global economic slowdown and uncertainty arising from trade tension between the US and China.

“We believe the consumer sector will outperform the [Straits Times Index], given its more defensive nature,” says analyst Juliana Cai in a Friday report.

According to a Nielsen survey released mid-Dec 2018, consumer confidence improved to a high of 98 points in 3Q18. However, it remains in the pessimistic zone, below the baseline of 100 points.

Will Delfi's expected recovery be sweet enough for investors?

SINGAPORE (May 9): RHB Research is keeping its “neutral” rating on Delfi with an unchanged target price of $1.54, even as it anticipates a recovery for the chocolate confectionery company.

“Delfi’s efforts to refocus on core brands and invest in its route-to-market capabilities are likely to bear fruit this year,” says analyst Juliana Cai in a Wednesday report.

However, she adds that Delfi’s stock is still not sweet enough to bite into.

Delfi posts 33.1% rise in 1Q earnings to $10.1 mil on higher revenue

SINGAPORE (May 7): Chocolate confectionery company Delfi saw its earnings grow 33.1% to US$7.6 million ($10.1 million) for the 1Q ended March, from US$5.7 million a year ago.

1Q18 revenue rose 15.1% to US$107.3 million, from US$93.3 million a year ago.

This was driven mainly by sales of Delfi’s Own Brands products in Indonesia, especially its premium product.

In addition, the higher revenue was boosted by sales deferred from Dec 2017 as well as the run-up to the Muslim Lebaran festivities.

As at end March, cash and cash equivalents stood at US$51.7 million.

Delfi acquires rights to Van Houten brand in key Asia markets

SINGAPORE (Apr 13): Chocolate confectionery company Delfi is acquiring a perpetual and exclusive license to the Van Houten brand of chocolate and cocoa products from Hershey Singapore, which is part of The Hershey Company, and Barry Callebaut AG for US$13 million ($17 million).

Delfi’s wholly owned subsidiary, PT Perusahaan Industri Ceres, has been the sub-licensee for the Van Houten brand in Indonesia for the past nine years.

Delfi upgraded to 'buy' on sweeter prospects ahead

SINGAPORE (Dec 19): DBS Group Research is upgrading chocolate confectionery company Delfi to “buy”, from “hold” previously, on hopes of a better 2018.

“Delfi’s share price is at 6-year low and has slumped by 36% year-to-date on the back of its disappointing performance,” says lead analyst Andy Sim in a Monday report. “Looking ahead, we believe its share price could have priced in the current subdued situation and should improve as we move into FY18F.”

Delfi seen to be sweeter amid first signs of revenue recovery

SINGAPORE (Nov 15): RHB Research is keeping its “buy” call on chocolate confectionery company Delfi but lowering its target price to $1.65, from $1.86 previously, due to slower-than-expected consumption recovery.

“3Q17 results have shown the first signs of recovery in terms of revenue growth in local currencies,” says analyst Juliana Cai.

How Singapore’s biggest listed F&B producers have sought to break the mould

SINGAPORE (Sept 4): Singapore is well-positioned to serve integrated networks in the F&B manufacturing and processing industry, in addition to enabling capital formation through its stock market, according to Singapore Exchange (SGX) market strategist Geoff Howie.

In the Aug 30 issue of SGX My Gateway, Howie notes that the largest 10 capitalised stocks listed on the SGX that represent industries linked to F&B production have held steady in 2H17 by averaging a marginal decline of just 0.1% in the close of Aug 29, following an average 5.4% decline in 1H17.


Delfi 1H earnings fall 10% to US$14.9 mil on lower revenue

SINGAPORE (Aug 7): Chocolate confectionery company Delfi posts earnings of US$14.9 million ($20.3 million) for the 1H ended June, falling 10.0% from US$16.6 million a year ago.

Earnings in 2Q climbed 14.4% to US$9.3 million, from US$8.1 million a year ago. However, this was including an exceptional gain of US$4.4 million arising from the disposal of the group’s 50% stake in its associate PT Ceres Meiji Indotama.

Revenue fell 7.9% to US$193.3 million for the first half of 2017, from US$209.9 million a year ago.

Delfi 1Q earnings fall 33% to US$5.6 mil

SINGAPORE (May 8): Delfi, the distributor of chocolate confectionery products, posted a 33.4% decline in earnings to US$5.6 million ($7.9 million) in the first quarter ended March, from US$8.4 million a year ago.

This was partially due to a higher effective tax rate on the back of higher withholding tax paid on dividend and royalty income received from the group’s subsidiaries in Indonesia.

Revenue fell 10.1% to US$93.1 million in 1Q, from US$103.6 million a year ago. This was led by a decline in its Indonesia market, which fell 14.7% to US$64.7 million.

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