CPIN - Still waiting for the positive impact from MBG

CPIN - Still waiting for the positive impact from MBG Charoen Pokphand Indonesia (CPIN) still recorded revenue of IDR33.06 tn (+0.3% yoy) and net profit of IDR1.9 tn (+7.4% yoy) in 1H25, despite pressure from lower ASP (broiler - LB and day old chick - DOC) post Lebaran festivities. Thus, CPIN’s '25F net profit could continue to grow, driven by a rebound in LB' and DOC' ASP. Currently, the average broiler chicken price stands at IDR20,360 per kg (-4.2% yoy). Fortunately, the local corn (LC) prices remained at IDR5,500 on government' cap for 14% water content. On the other hand, demand is expected to rise in line with the recovery of consumer purchasing power in 2H25F and Indonesia' economic conditions. However, the positive impact from free nutritious meal program (MBG) has yet to meet market' expectations, with disbursements reaching only IDR5 tn and 5.56 mn beneficiaries as of June 2025, well below this year’s target of IDR71 tn and 19.5 mn beneficiaries. (Source : Bisnis Indonesia)