CPIN - Excellent FY25 results, came way above expectations

KBVS Update
Friday, 27 Mar 2026

CPIN - Excellent FY25 results, came way above expectation
(BUY, with lower TP IDR5,250)

* Charoen Pokphand Indonesia’ (CPIN) earnings reached IDR2.28 tn (+71.8% yoy/+55.6% qoq) in 4Q25, on better demand and ASP for DOC and LB during festivities, with better costs management and lower SBM prices, despite higher LC prices. As a result, CPIN’ FY25 earnings  grew 52% yoy, which came way above ours’ (131.2%) and cons’ (140.5%) expectation.

* Thanks to better chicken' (DOC & LB) demand and ASP during festivities, CPIN’ revenue reached IDR20.1 tn (+13.2% yoy/+14.6% qoq) in 4Q25. As a result, CPIN' FY25 revenue reached IDR70.71 tn (+4.8% yoy), which came slightly above ours’ (100.6%) and cons’ expectation (101.7%).

* CPIN’ gross’, EBIT’ and net’ margin expanded to 21.6% (+220bps yoy/+250bps qoq), 14.6% (+280bps yoy/+250bps qoq) and 11.3% (+380bps yoy/+300bps qoq), respectively in 4Q25. All in all, CPIN’ net margin significantly expanded by 250bps yoy in FY25. Note that, LC’ ASP reached IDR5,937 per kg in 4Q25 or higher than other quarters. While, the imported SBM’ ASP was around USD291.4 /tons or still much lower than its 5years ASP of USD373.7 /tons, despite stronger USD vs IDR.

* We adjusted our CPIN ‘26F revenue to IDR76.4 tn (-2.5% from prior) as per our view that chicken demand would grow softly amid stable ASP this year due to current economic conditions. All in all, we still expect CPIN’ earnings to grow by 8.9% yoy to IDR6.2 tn (+25.3% from prior) in FY26F and net margin maintained at 8%, on higher chicken sales, low and stable raw material prices (LC & SBM) with better costs management, despite the latest government requirements on SBM.

* Maintain BUY on CPIN with lower TP of IDR 5,250/share, which implies 14x ‘26F P/E. Currently, CPIN is trading at 10.8x ‘26F P/E or at its -1.75stdev of its 5 years’ mean P/E.

Regards,
Andre Suntono - KBVS Research team