DELFI LIMITED
P34.SI
Delfi Ltd - Consumer Confidence In Indonesia At A High
- Indonesia is Delfi’s key market, and recent data suggests that consumer sentiment is picking up, boding well for the group’s sales. A survey by Bank Indonesia showed that consumer confidence has been improving since Jan-17 and in May the level reached its peak of 125.9 since 2000.
- In addition, the current Ramadan period is one of the key occasions for Delfi and may help to boost their chocolate sales as well.
- Meanwhile, recall that the group had conducted a product portfolio rationalization mostly in 4Q16, and will remain focused on driving growth for its remaining SKUs, particularly under their Own Brands products.
- Collaborations with Orion and Yuraku Confectionery would also allow Delfi to expand its product portfolio and reach more consumers.
- On the other hand, selling and distribution costs are expected to remain high given the continued investments in brand building and presence. As such, we keep our HOLD and S$2.21 Fair Value estimate.
Jodie Foo
OCBC Investment
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http://www.ocbcresearch.com/
2017-06-16
OCBC Investment
SGX Stock
Analyst Report
2.210
Same
2.210
