JPFA - A stellar performance in FY24, and to continue in ‘25F

KBVS Update 
Wednesday, 05 March 2025

JPFA - A stellar performance in FY24, and to continue in '25F
(Maintain BUY; with higher TP: IDR2,680@)

A good backdrop for JPFA as based on BPS, the total local corn production (14% of water content) could increase by 920k tons yoy to 5.95 mn tons (+18.39% yoy) in 4M25F. While, SBM’ price is currently around USD294.7 /tons or much lower than its 5years average price of USD383.3 /tons. Moreover, LB’ and DOC’ ASP were at IDR19,821 /LB (+12.6% yoy) and IDR5,748 /chick (+83.1% yoy), in Jan’25.

JPFA earnings grew significantly (+ >100% yoy/+49.7% qoq) in 4Q24 due to higher demand of chicken during Christmas and year end' festivities, with lower raw material prices (local corn/LC, soybean meal/SBM) and better chicken prices. As a result, JPFA' earnings grew 224.7% yoy to IDR3.02 tn in FY24, which came above ours (109%) and consensus' expectation (127.8%).

JPFA' revenue grew 8.3% yoy/6.5% qoq to IDR14.52 tn in 4Q24, due to higher demand of chicken during Christmas and year end' festivities with better chicken prices. Thus, JPFA' revenue grew 9.0% yoy to IDR55.8 tn in FY24.

JPFA' gross profit grew 106% yoy/26.6% qoq to IDR3.27 tn in 4Q24, on lower raw material (LC and SBM) prices, yoy. While, JPFA' EBIT grew 550.9% yoy/26.1% qoq in 4Q24 despite higher opex (+34.6% yoy/+26.9% qoq). All in all, JPFA' net margin expanded by 360bps yoy in FY24

We have made upward adjustments to our ‘25F for JPFA as to incorporate the company’ stellar performance in FY24 and our expectations due to higher demand of chickens on government' free nutritious food program, a stable LB’ and DOC’ ASP with low LC’ and SBM’ prices throughout this year. Thus, we expect JPFA’ revenue and earning to grow by 10.2% yoy and 15.1% yoy, respectively in '25F, with net margin to expand by 30bps yoy.  

Maintain Buy on JPFA with higher TP of IDR 2,680/share, which implies 9.1x ‘25F P/E or at -0.25 stdv of its 5 years mean P/E. Currently, JPFA is trading at 6.8x ‘25F P/E or slightly above its -1stdev of its 5 years’ mean P/E.

Regards,
Andre Suntono – KBVS Research Team