Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Asia’s leading multi-asset exchange

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up

<p><em><strong>Non- SGX Report: These equity research reports are not written by the SGX.</strong>&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</em></p>
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<h2>Delfi Ltd</h2>
<h3>Picking up where it left off</h3>
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<li>1Q22 revenue of S$133.0m is comparable to quarterly high of S$136.6m in 1Q20, suggesting business momentum has returned to pre-Covid levels.</li>
<li>We think Delfi could bring forward its expansion plans to FY22F if sales momentum is sustained for the next 1-2 quarters.</li>
<li>DelfigeneratedfreecashflowofUS$24.9min1Q22, bringing net cash position to US$99.9m that is supportive of c.5% dividend yields. Reiterate Add.</li>
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<h3>A seasonally strong quarter</h3>
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<p>1Q22 revenue of US$133.0m (+11.4% yoy; +23.6% qoq) came in at 30.6%/30.5% of our/consensus’ FY22F revenue forecasts, indicating a return to pre-Covid levels of sales (1Q20: US$136.6m). The strong sales momentum can be partially attributed to higher seasonality due to the gift-giving season for Valentine’s day during the quarter as well as preemptive sales ahead of the earlier-than-usual Lebaran this year. Regional markets recorded an all-time quarterly high revenue of US$40.2m since 1Q20 that likely benefitted from the rollout of Van Houten as a regional brand over 2H21. EBITDA grew 12.8% yoy to US$20.5m, forming 36.7% of our FY22F forecast and demonstrating better operating leverage with margins improving 0.3% pt in 1Q22. Nevertheless, EBITDA margin narrowed by 8.0% pts qoq due to higher opex as a result of seasonal trade promotions.</p>
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Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.




Delfi Ltd
Picking up where it left off





1Q22 revenue of S$133.0m is comparable to quarterly high of S$136.6m in 1Q20, suggesting business momentum has returned to pre-Covid levels.
We think Delfi could bring forward its expansion plans to FY22F if sales momentum is sustained for the next 1-2 quarters.
DelfigeneratedfreecashflowofUS$24.9min1Q22, bringing net cash position to US$99.9m that is supportive of c.5% dividend yields. Reiterate Add.





A seasonally strong quarter




1Q22 revenue of US$133.0m (+11.4% yoy; +23.6% qoq) came in at 30.6%/30.5% of our/consensus’ FY22F revenue forecasts, indicating a return to pre-Covid levels of sales (1Q20: US$136.6m). The strong sales momentum can be partially attributed to higher seasonality due to the gift-giving season for Valentine’s day during the quarter as well as preemptive sales ahead of the earlier-than-usual Lebaran this year. Regional markets recorded an all-time quarterly high revenue of US$40.2m since 1Q20 that likely benefitted from the rollout of Van Houten as a regional brand over 2H21. EBITDA grew 12.8% yoy to US$20.5m, forming 36.7% of our FY22F forecast and demonstrating better operating leverage with margins improving 0.3% pt in 1Q22. Nevertheless, EBITDA margin narrowed by 8.0% pts qoq due to higher opex as a result of seasonal trade promotions.

















(Non-SGX Report) Delfi Ltd - Picking up Where It Left Off