DFI Retail Group's stock (D01.SI) surged 5.85% during intraday trading on Tuesday, reflecting strong investor confidence in the company's revised financial targets and strategic direction.
The rally follows UOB Kay Hian analyst Adrian Loh's bullish note, which highlighted DFI's shift toward stronger cash generation and capital efficiency, expected to boost operating margins. The company is also repositioning its health and beauty business as an expert-led retail brand with technology-enabled services, a move that could further enhance profitability.
UOB Kay Hian raised its target price for DFI to US$5.30 from US$4.30 and maintained a buy rating, while also increasing 2025-2027 earnings projections by 6%-12% due to higher revenue growth and margin estimates. The stock's performance aligns with these optimistic revisions.