My Personal Analysis of Delfi Limited (SGX:P34)

Delfi Limited

Do you love chocolates? If you do, then might love the products distributed by this company known as Delfi Limited that I am going to review.

Delfi Limited was formerly known as Petra Foods Limited. The company changes its name to Delfi Limited in 2016 due to the company’s move away from cocoa ingredients and focus on the sales and marketing of its own brand of chocolate confectionery products in Indonesia, Philippines, Singapore and Malaysia.

Let us take a look in details of the various brands of chocolate distributed by Delfi Limited.


SilverQueen, Ceres, Selamat and Delfi are brands of chocolate distributed by Delfi Limited.

Singaporeans should be familiar with the Delfi brand of chocolates and sugar confectionary as they are commonly found in local supermarkets such as NTUC Fairprice.

Delfi NTUC Fairprice

SilverQueen, Ceres and Selamat are the lesser known brands to Singaporeans. However, they are household names, familiar to generations of Indonesians and Filipinos. SilverQueen and Ceres brands were introduced in the 1950s, Selamat in the 1970s and Delfi in the 1980s.

Delfi’s current portfolio of chocolate and sugar confectionery brands now spans over 400 products. Their broad range of chocolate confectionery products such as molded chocolate, dragees, enrobed wafers, and wafers and biscuits, covers most of the main product categories and widens our product appeal.

Which chocolate below is your favourite?

Delfi Limited Brands of Chocolates


Market Capitalization

Market capitalisation stood at $470.59 million with total number of issued shares at 611,157,000. Thus, Delfi Limited is considered as a small cap stock.


As per what was shown in Delfi’s 2019 annual report, 71.5% of its revenue comes from Indonesia and 28.5% comes from regional markets.

As you can see below, sales have been growing year on year to reach US$472 million in 2019.

For Regional Markets, revenues for FY2019 were higher year on year by 10.7%. The growth was mainly attributed to higher sales in Malaysia and sales of Van Houten products in their
Regional Markets.

Delfi Limited 2019 Revenue Breakdown

In FY2019, the Group’s Own Brands sales increased 9.5%. The growth was driven by the strong demand for their products in the premium format category, mainly in Indonesia which
achieved growth in excess of 20%.

Delfi Own Brand and Agency Brand Revenue Performance

Net Profit

As we can see from its annual report, net profit has been increasing year on year.

2019 2018 2017 2016 2015
Net profit/(loss) attributable to shareholders (US$ million) 28.2 20.9 19.7 26.2 (4.7)

Earning Per Share

Earnings per share has been rather inconsistent year on year.

2019 2018 2017 2016 2015
Earnings per ordinary share (US cents per share) 4.62 3.41 3.6 4.3 (0.8)

Return On Equity

As you can see from the table below, Return on Equity (ROE) is improving year on year.

2019 2018 2017 2016 2015
Return on Equity (%) 13.0 10.2 9.8 11.8 (1.8)


Net debt is used to determine how well a company can pay all of its debts if they were due immediately. Delfi Limited has a negative net debt which shows that it has more cash and cash equivalents than its financial obligations.

In short, Delfi Limited is financially stable.

2019 2018 2017 2016 2015
Total Debt (US$ million) (58.3) (59.0) (52.2) (53.8) (74.7)
Net Debt (0.7) (4.3) 15.2 14.0 44.9


Delfi Limited has been paying dividends constantly every year.

Based on 2019 dividend payout of 2.35 US cents (3.2 Singapore cents) and current share price of S$0.79 (24th March 2021), this translates to an estimated current dividend yield of 4.05%.

2019 2018 2017 2016 2015
Normal (US cents) 2.35 1.89 1.80 2.31 1.28
Special (US cents) 0.81


John Chuang Tiong Choon has been the Group Chief Executive Officer since 2004. He established the company in 1984 and has over 30 years experience in the chocolate, confectionery and cocoa industries and he constantly visits the operations around the globe that make up Petra Foods, coordinating the actions and activities that deliver our growth.

Besides John, the management team comprises of other Directors who had many years experiences on the chocolate, confectionery and cocoa industries.


What I like about this small cap stock is its strong cash flow and ability to grow its profit year on year. Despite the COVID-19 pandemic, this does not seem to affect Delfi Limited at all. Maybe people eat more chocolates during lock down?

Another thing I like about Delfi is the proven track record and foresight of its management team. In 2015, the company was able to move away from cocoa ingredients which is subjected to raw food supply and demand economical factors and venture into sales and marketing of chocolate confectionary products which has brought the company forward.

As a dividend investor, I have added (nibbled) Delfi Limited to my stock portfolio given that Delfi Limited has been consistent in paying dividends yearly. At the current share price of S$0.79, this is definitely not a steal as current dividend yield is only 4.05%.

What I did not like was the reporting currency for the Group is in US Dollar. The reason is because of the weakening of the operating currencies of their regional businesses (i.e. the Indonesian Rupiah, the Philippines Peso, the Malaysian Ringgit and the Singapore Dollar) during the 2015-2019 period against the US Dollar. This had a negative translational impact on their financial results and concealed the actual physical sales that were achieved.

Aztech Global Ltd IPO

Aztech Global

Aztech Global Ltd IPO (“Initial Public Offering”) is the latest talk in town. Basically, Aztech Global describes itself as a key technology enabler for the connected world of tomorrow, with a focus on providing one-stop design and manufacturing services.

The company manufactures IoT (Internet of Things) devices, Data-communication products and LED lighting products. Some example of IoT devices that the company manufactures are smart security cameras, IoT lighting products, home plugs, satellite modems, climate control mattresses and tracking devices.

IoT devices and Data communication products makes up 82.6% of the company’s FY20 revenue and 17.2% comes from LED lighting. North America and Europe contributes 59.7% and 32.9% of its revenue respectively while 7.4% comes from other markets.

Now that we understand what the company is doing, you may be wondering why Aztech Global is seeking for an IPO? The company believes that the global IoT market is still growing and there is a rising demand for energy efficient lighting products.

How Will Aztech Global Use The Proceeds?

You can find the information on page 66 of the prospectus. Below is a breakdown of how Aztech Global will use the proceeds.

Use of gross proceeds from the issuance of the New Cornerstone Shares Estimated Amount
Expansion and enhancement of manufacturing facilities 50,000
Expansion of business through, inter alia,
investments, mergers and acquisitions, joint ventures and/or strategic collaboration
Enhancement of R&D capabilities 15,000
Increase sales and marketing channels for overseas markets expansion 10,000
Expansion of ODM/JDM business to capitalise on opportunities in the growing IoT market 5,000
Working capital 58,600
Listing expenses 9,800
Total 198,400

Does Aztech Global Pay Dividends?

In the prospectus, it was mentioned that there is no fixed dividend policy. The directors intend to recommend dividends of at least 30.0% of their net profit after tax (excluding exceptional items) generated in FY2021 and FY2022.

I believe the reason for the conservative payout ratio is because the company wishes to retain cash to grow (expand) the company.


Aztech Global IPO is offered at an Invitation Price of S$1.28 per Offer Share. The closing date and time for the Public Offer is 10th March 2021 at 12pm. The company will commence trading on 12th March 2021.

Invest only if you believe IoT global market will continue to grow. I classify Aztech Global as a growth stock since there is no fixed dividend policy and payout is only 30%.