Delfi Last:0.755 -

Buoyant outlook

How come Everyday drops 1-2% any advice on this counter?

RHB maintains Delfi &lsquo buy&rsquo and target price of $1.21

RHB analyst Alfie Yeo remains &ldquo positive&rdquo on Delfi following its 1HFY2026 results, which is deemed to be on track to meet his full year estimates. In his Aug 25 report, Yeo kept his &ldquo buy&rdquo call and target price of $1.21.

For 1HFY2026 ended June 30, the confectionary company reported a 5.4% climb in patmi to US$12.9 ($16.5) million on revenue of US$266.6 million which is up 2.7% y-o-y. On a constant currency basis, the patmi increase would be 9.4% and the revenue increase, 2.9%.

Gross profit declined by 4.1% y-o-y to US$68.5 million, weighed down by cost of sales which increased by 5.3% to slightly above US$198 million. The gross profit margin was 25.7%, a 180 basis points decline from 1HFY2025.

Overall agency brands sales declined 12.4% y-o-y to US$93.7 million due to the exit of an agency brand. Excluding the exit of an agency brand, agency brands&rsquo sales rose 29% y-o-y.

Despite margins that were &ldquo slightly below&rdquo expectations, this was offset by &ldquo better-than-expected&rdquo financing costs. With cocoa prices at around US$6,000 per tonne and &ldquo far below&rdquo the US$11,000-12,000 per tonne peaks in the previous two years, Yeo expects growth driven by margin improvement going forward.

Yeo regards Delfi as a long-term takeover target, given its strong market share and extensive distribution network across Indonesia. Compared to his CAGR of 10% for forecast FY2025-2028 earnings, Yeo believes Delfi is currently trading at a compelling valuation with price-earnings growth of less than one and P/E of 9.1 times for FY2027 forecast.

Key risks for the counter include higher raw ingredient prices and less demand for chocolate-based products in Indonesia.

Using a blended valuation approach, Yeo values Delfi at $1.21, pegged to 15 times FY2026-2027, 51% upside and estimated 5.5% yield.

Shares in Delfi remain unchanged at 80 cents as at around 10.17 am on Aug 25.

So is it an opportunity or a value trap?

DBS maintains &lsquo hold&rsquo and $1 target price for Delfi

Chee Zheng Feng of DBS Group Research has maintained his &ldquo hold&rdquo rating for Delfi at unchanged target price of $1, after the confectioner released its 1HFY2026 results.

For 1HFY2026 ended June 30, confectionary company Delfi has reported a 5.4% climb in patmi to US$12.9 ($16.5) million on revenue of US$266.6 million which is a 2.7% y-o-y increase. On a constant currency basis, the patmi increase would be 9.4% and the revenue increase, 2.9%.

Chee believes that Delfi&rsquo s earnings recovery is slowed by foreign exchange headwinds. He trims his FY2026 earnings estimate by 2% and FY2027&rsquo s by 8% to reflect a &ldquo stronger-than-expected&rdquo US dollar-Indonesian rupiah exchange headwind.

Earlier in the year, Chee expected 2026 to mark an earnings &ldquo inflection&rdquo point driven by cocoa cost savings. However, he now believes much of this benefit will be offset by the weaker rupiah. Nevertheless, he believes that the company appears to be gaining market share through its competitive pricing strategy, which should position it well for a meaningful earnings recovery in 2027.

He warns of downside risks of higher cocoa prices, increased competition and continued rupiah weakness against the greenback.

Valuing Delfi at $1 which is 13.4 times forecast FY2027 P/E, Chee believes earnings recovery is not derailed but delayed, with earnings growth from 2027 onwards.

As at around 10.47 am on Aug 12, shares in Delfi are down two cents or 2.3% to 84 cents.

Delfi reports 5.4% y-o-y rise in patmi to US$12.9 mil for 1HFY2026, declares 1.05 US cents interim dividend

For 1HFY2026 ended June 30, confectionary company Delfi has reported a 5.4% climb in patmi to US$12.9 ($16.5) million on revenue of US$266.6 million which is a 2.7% y-o-y increase. On a constant currency basis, the patmi increase would be 9.4% and the revenue increase, 2.9%.

Gross profit declined by 4.1% y-o-y to US$68.5 million, weighed down by cost of sales which increased by 5.3% to slightly above US$198 million. The gross profit margin was 25.7%, a 180 basis points decline from 1HFY2025.

On a segmental basis, sales for its own brands rose 13.3% y-o-y to US$172.9 million, supported by a &ldquo steady&rdquo growth trajectory in Indonesia, the Philippines and Malaysia. Meanwhile, overall agency brands sales declined 12.4% y-o-y to US$93.7 million. This reflected the 3Q2025 strategic exit from an agency account, particularly in Indonesia. Excluding the terminated account, sales for the agency brands business grew 29% y-o-y.

As at June 30, Delfi held cash of around US$63.3 million with US$20.3 million in borrowings. The company generated net operating cash flow of US$14.0 million which the company says provides the financial flexibility to &ldquo comfortably&rdquo fund strategic capital investment while continuing to return value to shareholders.

Delfi has declared a 1.05 US cents dividend payable on Sept 11. This represents a 50% payout ratio of patmi.

CEO John Chuang says: &ldquo Our 1H 2026 performance demonstrates the continued strength of our Own Brands, highlighting the underlying demand of our key brands even as we navigated a challenging cost environment. By pairing top-line growth with disciplined cash management, we maintain a stable financial foundation to navigate current market challenges and continue delivering shareholder value.&rdquo

Shares in Delfi closed 0.5 cents or 0.6% lower to 86 cents on Aug 11.

The recent increase in cocoa prices not a good sign.

This seems linked to the US/Israel/Iran war. Bessent is right that the Asian countries are the ones that suffer most. It is sad though that he talks about this like it is a positive outcome.

Bought some @0.895 today . Feel Rp and cocoa price have stabslized.

Citing higher costs, RHB' s Yeo lowers target price for Delfi to $1.21

Alfie Yeo of RHB Bank Singapore remains positive on chocolate maker Delfi for its growth prospects, strong market share and extensive network in its key market Indonesia.

" While we are now more cautious on margins, we continue to anticipate a strong FY2025 to FY2028 earnings CAGR of 10%, driven by market penetration in Indonesia as well as in regional markets. We still regard Delfi as a long-term takeover target, given its strong market share and extensive distribution network across Indonesia," says Yeo, who has kept his " buy" call.

However, in the nearer term, given higher energy costs and weaker rupiah, the company&rsquo s earnings is likely to soften. As such, Yeo has cut his target price from $1.33 to $1.21.

In his June 15 note, Yeo says Delfi will see lower margins, no thanks to higher energy prices, even though cocoa prices remain favourable.

" The Middle East conflict has led to higher oil prices, which in turn could impact Delfi' s operating costs," he reasons, noting that oil prices surged from a low of US$56 per barrel in early 2026 to US$70-113 in March, representing an increase of more than 25%.

" We believe persistently high energy costs will impact Delfi' s margins in two ways &ndash higher opex and lower gross margins.

" Lower gross margins should come from higher upstream cocoa processing costs including energy and freight, while its downstream manufacturing processes should also be impacted by higher fuel costs &ndash both of which should translate to higher input costs, opex, and lower margins," says Yeo.

In addition, Delfi is likely to see some impact from a weakening rupiah, which has dropped to a record low versus the US dollar.

Based on Delfi' s rupiah vs USD sensitivity, a 5% depreciation of the rupiah against the US dollar would result in marginal 0.3% impact on the company' s earnings.

As such, Yeo has cut his estimates for the current FY2026 earnings by 10%, and for the coming FY2027 and FY2028 by 8%.

By applying the same blended 15x FY2026 and FY2027 earnings, this has led to Yeo lowering his target price by 9%.

For Yeo, key risks to his earnings estimates are lower-than-expected consumption of chocolate-based products in Indonesia, an increase in raw material prices such as cocoa beans, sugar, and the negative effect of changes in the USD vs the rupiah.

Delfi shares, as at 9.41 am, is down 1.07% to 93 cents. It is up 15.63% year to date.

How long will it take for the higher cocoa hedging to work its way out of the system?

Delfi&rsquo s Q1 Ebitda slips 0.8% to US$16.8 million despite higher sales

The group expects the Middle East conflict to exert upward pressure on some operating costs

[SINGAPORE] Chocolate confectioner Delfi : P34 0% reported a 0.8 per cent dip in its earnings before interest, taxes, depreciation and amortisation (Ebitda) to US$16.8 million for the first quarter ended Mar 31, 2026, from US$17.0 million in the year before.

The slight drop in Ebitda came even as net sales for the quarter rose 6.2 per cent year on year to US$159.1 million, the group said in a business update on Tuesday (May 19).

Topline growth was driven by a 19.6 per cent increase in the group&rsquo s Own Brands sales across the region, sustaining a momentum from late 2025. However, the overall dip in earnings was weighed down by a decrease in Agency Brands sales.

Gross profit margin for Q1 fell by 140 basis points to 26.6 per cent from the year before. The group attributed this primarily to a weaker Indonesian rupiah and the absorption of higher cocoa costs in its cost base from earlier forward contracts.

Sales in Indonesia, the group&rsquo s largest market, grew 2.5 per cent to US$101.9 million. Delfi noted that Own Brands in the country maintained strong growth momentum, growing 20.5 per cent on the back of its core premium brands. This was partially offset by the strategic termination of an Agency Brands account.

Sales in its regional markets &ndash comprising Malaysia, the Philippines and Singapore &ndash climbed to US$57.2 million, up 13.3 per cent from the year-ago period.

Delfi generated net cash from operations of US$28.7 million for the quarter. Its cash balance stood at US$93.8 million as at end-March, up from US$68.0 million as at end-December.

The group expects the ongoing Middle East conflict to exert upward pressure on some operating costs. It added that while the cocoa market has retreated from 2025 peaks on expectations of a supply recovery, the outlook remains volatile.

It said: &ldquo The ongoing conflict in the Middle East has heightened macroeconomic uncertainty and triggered volatility in energy costs and global currencies, including those in our key markets.&rdquo

To mitigate risks, Delfi said it is proactively managing its supply chain and strategically increasing its inventory of essential raw materials.

Shares of Delfi closed flat on Tuesday at S$1 before the announcement.

Delfi reports lower EBITDA of US$16.8 mil for 1QFY2026 net sales up 6.2% y-o-y to US$159.1 mil in the quarter

Delfi Limited (SGX:P34) has reported an EBITDA of US$16.8 million ($21.6 million) for 1QFY2026 ended March 31, which is a decline of 0.8% y-o-y due to lower gross profit margin and slightly higher operating costs.

The group&rsquo s net sales for 1QFY2026 increased 6.2% y-o-y to US$159.1 million, mainly driven by its own brands business despite ongoing macroeconomic pressures from the Middle East conflict.

Net sales from its Own brands business rose 19.6% y-o-y led by the strong performance in Indonesia. However, overall net sales were partially impacted by a lower revenue contribution in agency brands sales due to the termination of an agency account.

Excluding the impact of the termination in 3QFY2025, agency brands sales would have grown 30.4% y-o-y.

Gross profit margin for 1QFY2026 stood at 26.6% and was down 140 basis points y-o-y, mainly driven by weaker Indonesian Rupiah and the absorption of higher cocoa costs in the cost base from earlier forward contracts.

On the cash flow front, Delfi generated US$28.7 million in net cash from operations (after working capital), a portion of which was used to fund US$2.0 million in capital expenditures and fixed asset advances.

Working capital stood at US$134.9 million, an increase of US$1.1 million against the figure as at December 31, 2025. The higher number was driven by a US$22.0 million reduction in trade payables, and US$5.7 million increase in trade receivables, partially offset by a US$26.6 million reduction in inventories.

Cash balance increased by US$25.9 million to US$93.8 million at March 31, up from US$68.0 million as at December 31, 2025. The figure excludes the US$10.3 million final dividend for FY2025, which was already paid on May 15.

Looking ahead, to mitigate the various risks arising from the Middle East conflict, Delfi will proactively manage its supply chain and increase its inventory of essential raw materials.

The group will also continue reinforcing its market leadership through targeted investments in its core brands and product innovation.

cocoa bean price shoot up to more than 4000 , Delfi might drop back to below 1.00 soon .

Response We are encouraged by the decline in cocoa prices and its anticipated benefits for the confectionery industry. However, as chocolate manufacturers, including Delfi, hedged ingredient costs to mitigate peak cocoa prices during 2024 and 2025, margin improvements will not align linearly with the substantial decline in cocoa prices recently (c. 75% from the 2025 peak). As a result of this, there will be a lag before lower costs are reflected in the cost base as existing forward contracts expire and inventory are worked through. Delfi anticipates that, consistent with the broader industry, a gradual margin recovery may be expected. This timeline depends on inventory levels, forward contract durations, and finished goods delivery schedules. We expect the impact from the Middle East conflict and resulting uncertainties to temper these benefits, however we remain focused on disciplined pricing and operational efficiency to navigate these headwinds.

https://www.ft.com/content/ca630e7d-409e-459d-8a98-da3155cab074?syn-25a6b1a6=1

Shares at world&rsquo s biggest chocolate maker Barry Callebaut plunge as cocoa prices collapse

Company cuts profit forecast and warns about industry overcapacity and supply disruptions

It seems the falling cocoa price does not float all boats the same. Instead it results in chocolate maker on chocolate maker violence, with those companies who hedged less lowering prices and taking market share and/or profits from those who did hedge at higher prices. So need to understand the hedging positions to work out winners and losers.

After a brutal period of skyrocketing raw material costs, chocolate manufacturer Delfi is finally seeing light at the end of the tunnel.

Two recent analyst reports published on April 14 &mdash one from UOB Kay Hian and another from RHB &mdash both turned positive on the stock, recently trading at S$1.22.

However, while both brokerages agree that the worst is over, their financial forecasts and valuation strategies reveal some differences.

Sweet Relief from Plummeting Cocoa Prices

The primary driver behind the renewed optimism is a massive correction in the global cocoa market.

UOB Kay Hian titles its update " Starting To Look Sweet On Cocoa Price Relief," highlighting that cocoa prices have cratered by over 60% from their 2024&ndash 2025 peaks.

DELFI
Share price: $1.22	Targets: $1.33, $1.68

This reversal is setting up a " strong margin recovery cycle," say analyts Heidi Mo and John Cheong.

RHB analyst Alfie Yeo echoes this sentiment.

In its report more conservatively titled " Benefitting From Lower Cocoa Prices," he notes that cocoa is down roughly 75% from its 2025 peak.

Because Delfi' s gross profit margin has a strong historical correlation with cocoa prices, RHB expects profitability to " improve further on more attractive FY27F input costs" .

Gradual Margin Expansion

While the spot price of cocoa has dropped, investors shouldn' t expect an overnight explosion in Delfi' s profits.

The analysts point out that Delfi&rsquo s forward-purchasing strategies will delay the windfall.

" Rupiah weakness remains a key offsetting factor as raw material costs are largely USD-denominated. Recall that a 3.9% rupiah depreciation in 2024 contributed to a 1.1ppt decline in gross margin. YTD, rupiah depreciation is 2.3%."
-- Heidi Mo (photo) & John Cheong

UOB Kay Hian cautions that the earnings recovery will be " gradual rather than immediate" because Delfi secures its inventory up to 18 months in advance, and a depreciating Indonesian rupiah provides a near-term headwind.

RHB agrees with this lagged timeline, noting that FY26 input costs are already largely locked in due to the company' s typical 6 to 12-month hedging.

Therefore, the current cost tailwinds will impact earnings " more markedly in FY27F" .

As a silver lining, UOB Kay Hian points out that Delfi&rsquo s " shorter cycle enables faster cost pass-through" compared to larger multinational peers, positioning them to bounce back efficiently.

" We believe that the current cocoa price environment should benefit Delfi more markedly in FY27F, since we envisage that some of its input prices for FY26F would have already been locked in due to hedging of typically 6-12 months out."
-- Alfie Yeo, analyst, RHB

Brand Strength vs. M& A Potential

When evaluating Delfi' s strategic moat, the analysts take slightly different angles.

UOB Kay Hian focuses on operational resilience, noting that " own brands strength underpins earnings quality," contributing over 60% of revenue.

Delfi' s dominant 50% market share in Indonesia and localized manufacturing are viewed as key assets in navigating volatility.

RHB, on the other hand, views the company' s extensive distribution network and dominant market share as making Delfi a highly attractive " long-term takeover target" .

Valuation and Financial Forecasts

Despite sharing the same underlying thesis, the two brokerages diverge on their forecasts and valuation metrics.

UOB Kay Hian aggressively raised its target price by 50% to S$1.68 through rolling their valuation base to 2027 to capture the margin recovery and applying a premium multiple of 25.5x 2027F P/E.

Conversely, RHB raised its target price more modestly to S$1.33, utilising a 15x blended FY26-27F P/E multiple and notably applied a 2% ESG discount to the intrinsic valuation because Delfi' s ESG score sits just below the country median.

Interestingly, while RHB' s target price is much lower, its actual revenue and profit forecasts are significantly more bullish than UOB' s.

Here is a tabulated comparison of their forecast financials and valuation metrics:

Metric	UOB Kay Hian	RHB
Target Price	S$1.68	S$1.33
Valuation Metric	25.5x 2027F P/E (+0.5SD above historical mean)	15x blended FY26-27F P/E (with a 2% ESG discount applied)
FY26 / FY27 Revenue	US$513m / US$526m	US$526m / US$553m
FY26 / FY27 EBITDA	US$55m / US$58m	US$70m / US$80m
FY26 / FY27 Net Profit*	US$29m / US$31m	US$39m / US$46m
FY26 / FY27 P/E	19.6x / 18.2x	14.55x / 12.42x
FY26 / FY27 Dividend Yield	2.6% / 2.8%	3.8% / 4.4%

*Note: UOB uses Adjusted Net Profit, while RHB uses Recurring Net Profit.

Ultimately, both brokerages paint a bright picture for Delfi.

With raw material headwinds turning into tailwinds, the next 24 months could indeed be very sweet for shareholders.

Time for them to offload to retaial investors , as always !

Joelton ( Date: 15-Apr-2026 12:14) Posted:

With cocoa prices down 60% from peak, UOBKH raises target price for Delfi to $1.68

Heidi Mo and John Cheong of UOB Kay Hian have raised their target price for Delfi from $1.12 to $1.68, on the premise the cocoa prices, down some 60% from the 2024 peak, means lower cost pressures on the chocolate maker.

In their April 14 note, Mo and Cheong point out that from up to US$12,900 per tonne, cocoa prices are now as low as US$3,200 per tonne, thereby marking a " clear turning point" where Delfi&rsquo s gross margin was compressed to 26.5% in 2025 from 27.4% in 2024. Back in 2018, the company was making gross margins of around 35%.

Last year, margins were further weighed down by a weaker rupiah against the reporting currency, the US dollar, as well as higher spending on promotions.

" With costs now correcting sharply, we expect a lagged but meaningful recovery in gross margins in 2026-27, supporting improved operating leverage and earnings recovery," state Mo and Cheong.

While Singapore listed, Delfi commands half the chocolate market share in Indonesia.

However, the analysts point out that the benefit from lower cocoa prices will not manifest immediately as the company buys up to 18 months ahead.

Also, rupiah may remain weak and offset lower raw material costs, which are largely denominated in the greenback. As an indication, a 3.9% rupiah depreciation in 2024 contributed to a 1.1ppt decline in gross margin.

" Hence, while the direction of margins is improving, we expect the pace to be gradual rather than immediate," say Mo and Cheong.

They believe that Delfi operates on a shorter product cycle, which means it can pass through differences in costs more quickly than the larger multinationals in the same space. Delfi can manage too by making tweaks in pricing, product sizes, stronger focus on more premium own brands that fetch better margins

Delfi' s own brands products are seen to continue to generate the bulk of its earnings, posting a growth of 4.9% last year, which has helped to offset declines in production on behalf of other brands.

" This reflects strong brand equity and pricing power, particularly in key products such as SilverQueen and Cha Cha. Given that Delfi' s own brands typically carry higher margins and allow for greater control over pricing and product mix, this stable revenue base positions Delfi well to capture upside as cocoa prices normalise," reason Mo and Cheong.

Their higher target price of $1.68, up from $1.12, is derived after they raise their valuation multiple from the historical mean of 18x to 25.5x FY2027 earnings, which is 0.5 sd above the historical mean.

" With 2025 marking a margin trough, we see Delfi entering an earnings recovery cycle supported by improving gross margins and operating leverage. Delfi currently trades at 18x 2027F PE, or a 25% discount to global peers," the analysts say.

Delfi shares as at 10.25 am, was up 1.68% to $1.21.

With cocoa prices down 60% from peak, UOBKH raises target price for Delfi to $1.68

The Edge SingaporeTue, Apr 14, 2026 &bull 10:21 AM GMT+08 &bull 3 min read

With cocoa prices down 60% from peak, UOBKH raises target price for Delfi to $1.68

Delfi manufactures chocolates for other brands but increasingly for its own brands / Photo: Albert Chua of The Edge Singa

Heidi Mo and John Cheong of UOB Kay Hian have raised their target price for Delfi from $1.12 to $1.68, on the premise the cocoa prices, down some 60% from the 2024 peak, means lower cost pressures on the chocolate maker.

In their April 14 note, Mo and Cheong point out that from up to US$12,900 per tonne, cocoa prices are now as low as US$3,200 per tonne, thereby marking a " clear turning point" where Delfi&rsquo s gross margin was compressed to 26.5% in 2025 from 27.4% in 2024. Back in 2018, the company was making gross margins of around 35%.

Last year, margins were further weighed down by a weaker rupiah against the reporting currency, the US dollar, as well as higher spending on promotions.

" With costs now correcting sharply, we expect a lagged but meaningful recovery in gross margins in 2026-27, supporting improved operating leverage and earnings recovery," state Mo and Cheong.

While Singapore listed, Delfi commands half the chocolate market share in Indonesia.

However, the analysts point out that the benefit from lower cocoa prices will not manifest immediately as the company buys up to 18 months ahead.

Also, rupiah may remain weak and offset lower raw material costs, which are largely denominated in the greenback. As an indication, a 3.9% rupiah depreciation in 2024 contributed to a 1.1ppt decline in gross margin.

" Hence, while the direction of margins is improving, we expect the pace to be gradual rather than immediate," say Mo and Cheong.

They believe that Delfi operates on a shorter product cycle, which means it can pass through differences in costs more quickly than the larger multinationals in the same space. Delfi can manage too by making tweaks in pricing, product sizes, stronger focus on more premium own brands that fetch better margins.

Delfi' s own brands products are seen to continue to generate the bulk of its earnings, posting a growth of 4.9% last year, which has helped to offset declines in production on behalf of other brands.

" This reflects strong brand equity and pricing power, particularly in key products such as SilverQueen and Cha Cha. Given that Delfi' s own brands typically carry higher margins and allow for greater control over pricing and product mix, this stable revenue base positions Delfi well to capture upside as cocoa prices normalise," reason Mo and Cheong.

Their higher target price of $1.68, up from $1.12, is derived after they raise their valuation multiple from the historical mean of 18x to 25.5x FY2027 earnings, which is 0.5 sd above the historical mean.

" With 2025 marking a margin trough, we see Delfi entering an earnings recovery cycle supported by improving gross margins and operating leverage. Delfi currently trades at 18x 2027F PE, or a 25% discount to global peers," the analysts say.

Delfi shares as at 10.25 am, was up 1.68% to $1.21.

Low $1.10 today...Now $1.17 .....Strong player accumulating

SmallSmall ( Date: 10-Apr-2026 16:05) Posted:

$1.15...Next target $1.20 -> $1.25 -> $1.30

SmallSmall ( Date: 10-Apr-2026 14:33) Posted: