Delfi Ltd - OCBC Investment 2017-06-16: Consumer Confidence In Indonesia At A High

Delfi Ltd - OCBC Investment 2017-06-16: Consumer Confidence In Indonesia At A High 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 | http://www.ocbcresearch.com/ 2017-06-16
OCBC Investment SGX Stock Analyst Report HOLD Maintain HOLD 2.210 Same 2.210



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