By Megan Cheah
Shares of DFI Retail Group rose to their highest level since 2021 on Friday, days after the retailer disclosed higher earnings and sales targets.
The stock rose as much as 7.4% to $4.22 in Singapore before paring gains. It was recently 3.8% higher.
The multiformat retailer, which operates brands across sectors such as food, health and beauty, and convenience stores, on Wednesday announced new targets, including a goal to reach $310 million to $350 million in underlying profit by 2028. That implies a compound annual growth rate of 11% to 15% over 2025 to 2028.
DFI shares have risen around 16% since the statement.
Analysts seem confident that DFI can hit these goals, and have broadly upgraded their financial estimates for the next three years.
Store network expansion, widening margins and higher operating efficiency are likely to drive DFI's profit, said RHB Research analyst Alfie Yeo in a note. He raised his 2026 and 2027 earnings projections by 2.0% and 1.0%, respectively, to factor in the new company guidance.
DFI could achieve its 2028 underlying profit target, which excludes any gains from mergers and acquisitions, even earlier in 2027, said CGS International analysts Meghana Kande and Lim Siew Khee.
The retailer's expectation of stronger margins across its segments is also likely to support the company's higher dividend payout policy of 70%, versus previous guidance of around 60%, they added.
Write to Megan Cheah at megan.cheah@wsj.com
(END) Dow Jones Newswires
December 05, 2025 02:13 ET (07:13 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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