Stock Idea Delfi Limited: An emerging market play in the fa | FSMOne SG - Research Highlights

Stock Idea

Delfi Limited: An emerging market play in the fast-moving consumer goods (FMCG) business

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• Delfi Limited was founded in the 1950s as a chocolate manufacturer in Indonesia. Today, it has become a key regional player in the fast-moving consumer goods (FMCG) business.

• Delfi has the first-mover advantage in Indonesia, which helped create its strong brand recognition. Edging out
multinational competitors, it is the leading player in the industry.

• Growing disposable income in Indonesia is expected to have a positive impact on the long-term growth in consumption of chocolate confectionery.

• With a net cash position of USD 14.8 million, we believe Delfi has sufficient support to navigate through the uncertainties stemming from the pandemic.

• Our target price for Delfi is SGD 1.0, based on a fair PE multiple of 16X to our projected FY2023 earnings per share. The upside potential is 4.2% and the estimated dividend yield is 3.4%.

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: Delfi Limited (SGX:P34)