Home Capital Broker's Calls

Japfa offers diversification at a bargain price: DBS

Atiqah Mokhtar
Atiqah Mokhtar8/26/2021 10:35 AM GMT+08  • 3 min read
Japfa offers diversification at a bargain price: DBS
DBS expects Japfa's China dairy operations to mitigate short-term weaknesses in other operations due to Covid-19.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

DBS Group Research analyst Cheria Christi Widjaja has reiterated her “buy” call for Japfa in a research note dated August 24, with a target price of $1.05.

“We reiterate our “buy” recommendation on Japfa as we expect its resilient performance to continue in 2H2021 supported by its China dairy operation which will mitigate the potential short-term weakness in other operations due to Covid-19 situations,” Widjaja says.

The way she sees it, while Japfa’s Indonesian poultry operations will face near-term headwinds in 3Q2021 due to stricter movement restrictions. In addition, she expects growth from its Vietnam swine operations, which saw sales for swine fattening and swine feed grow by 29% and 43% y-o-y respectively in 1H2021, to slow down in 2Q2021 due to the worsening Covid-19 situation in Vietnam.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now