IND Poultry Update: JPFA Top Pick; Still BUY on CPIN
Michael W Setjoadi – RHB Sekuritas
» Higher-than-expected day-old-chicks and broiler prices quarter-to-date should lead to consensus’ earnings upgrades for FY18
» Falling soybean meal prices (outlook: high crop harvest yield in the US and increase in harvest area in Brazil). This should eliminate the weak IDR currency vs USD, and projected higher local corn prices in 2H18
» Undersupply situation in the poultry market is only expected to normalise post Lebaran 2019 on potentially higher GPS import quota this year
Top Pick: JPFA on cheap valuation, market share gain momentum and highest live bird contribution (JPFA is the main beneficiaries of high chicken prices)
Details in our report: https://research.rhbtradesmart.com/attachments/68/rhb-report-ind_indonesia-poultry_sector-update_20180905_rhb-73755248721194015b8f0b7e4821b.pdf
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