Japfa Limited

Don't chicken out of Japfa over broiler price declines, says Maybank

SINGAPORE (April 2): Maybank Kim Eng is maintaining “buy” on Japfa with an unchanged price target of $1.05 despite recent declines in Indonesian poultry stocks, due to market fears of oversupply after broiler prices declined further in March.

In a Tuesday report, analyst Neel Sinha says these concerns are likely overblown, as he concurs with Japfa’s management theories that the broiler price correction has more to do with seasonal weak demand rather than oversupply.

Japfa's 1Q18 earnings surge eightfold to $22.1 mil on higher revenue

SINGAPORE (Apr 30): Japfa saw its earnings for the first quarter ended Mar 2018 surge eightfold to US$16.7 million ($22.1 million) from US$2.1 million a year ago due to higher revenue and profitability.

Revenue grew 15% to US$845.5 million from US$736.1 million previously, which Japfa attributes to PT Japfa Tbk’s margin and volume expansion.

This was further boosted by a narrowing of losses by Animal Protein Other (APO), which generated positive EBITDA over the quarter after navigating a challenging year throughout 2017, says the group.

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