SINGAPORE (Nov 3): DBS Vickers has maintained its “buy” call on Japfa Limited but has raised its target price to 90 cents from 46 cents following better than expected Q3 earnings and an improving outlook.

The producer of chicken and milk reported a 3Q15 core earnings of US$14.1 million, which beat expectations of between US$7.4 to US$10.1 million. This brings 9M15 core earnings to US$30 million, which is already 84% of DBS Vickers’ original full year estimates.

The growth was driven by better performance of its Japfa Comfeed division. The company was also able to regain to a certain extent, pricing power in its other businesses like day-old chicks in Indonesia as well as raw milk prices in China.

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