SINGAPORE (Dec 10): DBS Group Research is reiterating its “buy” rating for Japfa Limited while starting coverage of Charoen Pokphand Indonesia (buy), Japfa Comfeed Indonesia (buy) and Malindo Feedmill (hold).

In a Thursday report on Indonesia’s animal protein industry, analyst Ben Santoso says a nationwide culling has lowered the parent stock population, so poultry breeders should see both lower feed costs and stable day-old-chick prices.

These, combined with a more stable Rupiah, reduced USD debt exposure, lower capital
expenditure, limited supply of grandparent stock due to avian flu outbreak in the US and parts of Europe, should result in sustained earnings recovery over the next twelve months, said Santoso.

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