{"id":331966,"date":"2025-03-26T01:18:14","date_gmt":"2025-03-25T17:18:14","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331966"},"modified":"2025-03-26T01:18:17","modified_gmt":"2025-03-25T17:18:17","slug":"stock-in-focus-dl-industries-inc-dnl-26-march-2025-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-dl-industries-inc-dnl-26-march-2025-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: D&L Industries Inc. (DNL) – 26 March 2025 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>DNL<\/td><\/tr>
Company Name<\/strong><\/td>D&L Industries Inc.<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>26 March 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 8.10<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We reiterate our BUY recommendation with a Target Price of P8.10\/share. This is backed by DNL’s strong recovery in export sales, robust growth in key divisions, and favorable consumer trends. While risks associated with global trade tensions may impact DNL’s export growth, its minimal exposure to the US market and capacity for growth position it well for continued success.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

D&L Industries, Inc. (DNL)\u2019s net income grew 2% to P2.34 billion, while revenues rose 21% to P40.7 billion, driven by stronger volumes in food ingredients, specialty plastics, and oleochemicals. Export sales, especially in food ingredients and specialty oleochemicals, showed significant growth, while domestic demand remained robust.<\/p>\n\n\n\n

The food ingredients division grew 33%, supported by strong exports and expected election-related spending in 2025. Oleochemicals grew 13% due to favorable biodiesel regulations, and specialty plastics rose 7%, driven by the global auto industry. Despite challenges in the ODM segment, long-term growth is expected with easing inflation and growing exports. DNL’s oleochemicals and specialty oleochemicals are poised for continued growth, fueled by increased biodiesel mandates and Chemrez’s expanded capacity at the Batangas plant, which will boost volumes and margins.<\/p>\n\n\n\n

DNL’s export performance showed a strong recovery in 2024, with export revenue increasing 39.5% y\/y to P9.99 billion, up from P7.16 billion in 2023. This growth followed a challenging 2023 marked by global supply chain disruptions and economic uncertainties in key markets like China and the UK. However, in 2024, exports to regions including China, Europe, and Australia saw significant growth with revenue surging by over 150%. However, risks such as trade tensions and tariffs persist may hamper growth, DNL\u2019s minimal exposure to the US market limits the impact on overall performance.<\/p>\n\n\n\n

Looking over consumer trend, consumer spending is expected to rise, supported by easing inflation and improved purchasing power along with higher real incomes and election-related spending. DNL is well-positioned to capitalize on these trends with its high capacity, benefiting from increased, demand for its products as consumer spending strengthens.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>