Japfa - CGS-CIMB Research 2022-04-29: Better Clarity On The Path Ahead

Japfa - Better Clarity On The Path Ahead

JAPFA LTD. (SGX:UD2) | SGinvestors.ioJAPFA LTD. (SGX:UD2)
  • Japfa (SGX:UD2)'s 1Q22 net profit of US$22.7m was in line with our FY22F estimate but below consensus due to persistent cost pressure despite in-line revenue. APO shaved net losses of US$20.8m in 4Q21 to US$11.2m in 1Q22. EBITDA turned positive to US$8.3m in 1Q22 from losses of US$9.9m in 1Q21.
  • With better market dynamics, Japfa's management has expressed its intention to resume expansion plans across the businesses. Correspondingly, we could see capex increase closer to pre-COVID levels (FY19: US$319m) from an average of ~US$200m over the past two years.
  • We reiterate our ADD call with an SOP-based target price of S$0.81 for Japfa, with S$0.48 per share in value locked behind AustAsia Investment Holdings (AIH) based on precedent sale-of-stake transactions in FY21 and remaining S$0.33 valued at 6x FY23F P/E of its remaining Animal Protein-Others (APO) business, slightly less than 0.5 standard deviation below its historical average due to ongoing cost pressures.

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 2022-04-29
SGX Stock Analyst Report ADD MAINTAIN ADD 0.810 SAME 0.810

Read also CGS-CIMB's most recent report:
2022-11-02 Japfa - No Reprieve From Margin Compression

Check out the most recent target prices at Japfa Target Prices. Listing of analyst research reports at Japfa Analyst Report.

Relevant links:
Japfa Share Price History,
Japfa Announcements,
Japfa Dividends & Corp Actions,
Japfa News Articles


SGX Stock / REIT Search


Trust Bank Referral Code