Japfa - Bracing For The Downcycle
JAPFA LTD. (SGX:UD2)
- Japfa (SGX:UD2)'s FY21 core net profit of US$132.7m missed our estimate by 14% due to higher cost pressures across business segments and extended APO losses.
- In 4Q21, the resurgence of African Swine Fever (ASF) led to pre-emptive sales of swine in Vietnam, keeping swine prices weak. Operationally, Japfa continued to deliver healthy growth in sales volumes of 8.9-42.3% y-o-y across various animal feed and proteins in 4Q21
- We reiterate HOLD call on Japfa with a lower target price of S$0.65 as we roll forward our valuation, now based on CY23F P/E of 7x (vs. 9x previously), slightly below its five-year historical average to account for the expected share price weakness in the near term due to lack of profit growth visibility.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
TAY Wee Kuang CGS-CIMB Research | https://www.cgs-cimb.com 2022-03-03
SGX Stock
Analyst Report
0.65
DOWN
0.770
Read also CGS-CIMB's most recent report:
2022-11-02 Japfa - No Reprieve From Margin Compression
Relevant links:
Japfa Analyst Report,
Japfa Target Price,
Japfa Share Price History,
Japfa Announcements,
Japfa Dividends/ Corp Actions,
Japfa News Articles