DFI reiterates its FY2026 guidance of underlying profit at US$270 to 300 million supported by 2-3% organic revenue growth. It has reaffirmed its mid-term return on capital employed (ROCE) target of above 15% too. Chee estimates that excluding discontinued operations, underlying profit for FY2025 would be around US$240 million.
Chee Zheng Feng of DBS Group Research has kept his "buy" call and US$5 target price on DFI Retail Group after the retailer announced what he calls a "strong start" for the year. In its 1QFY2026 ended March, DFI reported that underlying profit from continuing business grew by 49% y-o-y, ahead of estimates of 22% y-o-y growth expected for the whole of FY2026.
The retailer, which sells via brands such as 7-Eleven, Guardian, Ikea, saw strong performance across its convenience, food and home furnishing segments, and enjoyed lower financing costs.
