CPIN - FY24 earnings above on better ASP

CPIN - FY24 earnings above on better ASP Charoen Pokphand Indonesia' (CPIN) earnings grew 471.5% yoy/114.3% qoq in 4Q24 due to higher sales amidst better broiler' (LB) and Day Old Chick' (DOC) average selling prices (ASP) and lower raw material prices (Local Corn/LC, Soybean Meal (SBM). As a result, CPIN' earnings grew 60.1% yoy to IDR3.7 tn in FY24, which came above ours (117.8%) and consensus' expectation (115.5%). CPIN' revenue grew 22.6% yoy/6% qoq to IDR17.8 tn in 4Q24, due to higher chicken consumption during Christmas and year end' festivities, amidst better broiler and DOC' ASP. Thus, CPIN' revenue grew 9.5% yoy to IDR67.5 tn in FY24. CPIN' gross profit grew 153.2% yoy/70.2% qoq to IDR3.44 tn in 4Q24, due to lower LC' and SBM' prices. CPIN' EBIT grew significantly (+1475.1% yoy/+124.1% qoq) in 4Q24 despite higher opex (+9.9% yoy/+24% qoq). CPIN' EBIT growth in 4Q24 was mainly driven by EBIT growth from broiler' segment (+303% yoy/+584.1% qoq), DOC' (+298.2% yoy/+136.8% qoq) and processed chicken (+164.8% yoy/+546.6% qoq). All in all, CPIN' gross, EBIT and net margin expanded to 15.4% (+200bps yoy), 8.6% (+220bps yoy) and 5.5% (+170bps yoy), respectively in FY24. (Source : Company, KBVS research)