UOB Kay Hian Research has initiated coverage on Dezign Format Group, an event management company, with a “buy” recommendation and a target price of $0.27 (S$0.37). This represents a 21.3% upside from its current share price of $0.22 (S$0.305). The company, known for its design, fabrication, and project management services, is expected to see core earnings growth of 20% in 2025 and 16% in 2026, driven by the rising demand in the meetings, incentives, conferences, and exhibitions (MICE) industry and the popularity of experiential events.
Dezign Format Group boasts a robust orderbook of $17.5m (S$24m) as of 31 December 2024, which is anticipated to support its earnings growth. The company has a strong track record, having worked with high-profile clients such as Burberry, Dior, and Singapore Airlines. It has completed notable projects including the Marina Bay Sands Lunar New Year 2024 and the IKEA Alexandra Store Interior Fit-Out.
The company is also expanding into the immersive location-based entertainment (LBE) segment, with new virtual reality projects planned across Southeast Asia. Dezign’s Malaysia production hub, expected to be operational by the end of 2025, is set to enhance delivery and cost efficiency.
With a high-margin, cash-generative business model, Dezign Format Group is well-positioned for future growth. The company’s net cash position is projected to reach $8.2m (S$11.2m) by August 2025, bolstered by $3.5m (S$4.8m) in net IPO proceeds. UOB Kay Hian highlights the company’s strong fundamentals, noting its superior net margin of 14.4% and a dividend yield of around 4% for 2026.
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