DFI Retail Group would do investors a service by releasing market-sensitive news on SGXNet

[SINGAPORE] Mainboard-listed DFI Retail Group Holdings’ ( DFIRG ) closing price shot up 4.9 per cent or US$0.17 to its 52-week high of US$3.67 on Dec 3.

A look at the Singapore Exchange (SGX) website showed no announcement by the Asian retail group that day.

Its last post was more than a month ago, on Oct 31.

Hours after the stock market closed that day, at 7.23 pm, the group announced a three-year plan to deliver “sustained profitable growth and returns” via a press release on news distribution centre Media OutReach Newswire.

However, the newswire had already published this release on its website earlier, at 1 pm. That press release was also posted on DFIRG’s website, but the publication time was not indicated.

In the press release, the group outlined strategic initiatives to grow its underlying profit by 11 to 15 per cent a year from 2025 to 2028. It said that it is aiming to achieve underlying profit of US$310 million to US$350 million by 2028, and improve its return on capital employed to at least 15 per cent.

It also unveiled a new dividend policy based on a 70 per cent payout ratio, effective from the final dividend of 2025, up from the previous 60 per cent payout guidance.

According to DBS Equity Research, DFIRG’s management laid out clear strategies and financial targets for each operating segment at its inaugural Investor Day that day.

There was a presentation deck for this as well, which showed the event started at about 9 am and concluded at around noon.

Underscoring the market sensitive nature of the disclosures that were made, DFIRG’s share price rose by a further 11.7 per cent over the next two days. Yet, all this information remains unavailable on the SGX website.

Back in March, the group sold its Singapore food business – which included the Cold Storage, CS Fresh, Jason’s Deli and Giant brands of supermarkets – to Malaysian buyer Macrovalue. DFIRG said then that it would pivot its focus and resources in Singapore towards its Guardian and 7-Eleven businesses. However, this important information was also announced through a press release, and not via the SGX website. Moreover, while the press release detailing the S$125 million transaction was sent to the media shortly after the Singapore stock market opened, the information was embargoed until 1 pm.

DFIRG shares rose 6.2 per cent or US$0.14 to an intraday high of US$2.39 following the announcement, before ending the day up 4 per cent or US$0.09 at US$2.34.

When queried, the company said that it will publish on SGXNet the regulatory announcements that it files in the United Kingdom, where it maintains a primary listing. It has secondary listings in Singapore and Bermuda.

“As no regulatory announcement is required to be filed under the UK Listing Rules, the press releases for our Investor Day and divestment of our Singapore food business were made on a voluntary basis and disclosed on our website to facilitate dissemination of information to shareholders and potential investors,” DFIRG said.

Speaking to The Business Times, David Gerald, chief executive of investor watchdog Securities Investors Association (Singapore), noted that the forward-looking statements in the press release outlined DFIRG’s strategic ambitions and short-term outlook. “This clarity on their aspirations is beneficial to investors, but their awareness is crucial.”

It is laudable that the group made such announcements voluntarily, but its dissemination channel may create asymmetry of information.

The fact that DFIRG unveiled its strategic plan and updated dividend policy at its inaugural Investor Day suggests that the group wants to raise its profile and improve its appeal to investors.

So, it is odd that DFIRG did not also share the information via the Singapore bourse’s website, where it maintains a listing – even if it is a secondary listing.

Generally, investors would look to the stock exchanges first for announcements of market-sensitive information by listed companies, rather than checking each company’s website for important news. Hence, for the sake of convenience and fairness to all investors, would it not make sense for DFIRG to begin disseminating market-sensitive information on the stock exchanges where it is listed?