Stock Analysis: Delfi | Lianhe Zaobao

Delfi maintains a buy rating, raising the target price to 1.68 yuan, with the current closing price at 1.19 yuan. The significant decline in cocoa prices will help the company's revenue recovery and alleviate operational leverage effects. Although the gross margin has been compressed due to high input costs, the drop in cocoa prices indicates that the company is gradually freeing itself from cost pressures. The company's advance procurement strategy will gradually reveal the benefits of lower costs. Compared to large multinational peers, Delfi can more quickly pass on the benefits of declining raw material costs and selectively raise prices to improve profitability