- Following a 3Q23 core net profit of US$32.4m, we were optimistic of sustained profitability for 4Q23. However, Japfa (SGX:UD2) reported a core net loss of US$11.2m in 4Q23, as ASPs across proteins in Indonesia and Vietnam declined in Dec 23.
4Q23 profitability hit by weak ASPs in Dec
- - Read this at SGinvestors.io -
- Meanwhile in Vietnam, swine prices fell to VND48.6k/kg in Dec 23, resulting in a core net loss of US$6.8m in 4Q23, from a core net profit of US$1.7m in 3Q23.
- Although ASPs for swine in Vietnam and DOCs have recovered year-to-date, we think that there could be some seasonality involved due to celebration of Tet in Vietnam during Feb 24, and ahead of Lebaran festivities in Apr 24 for Indonesia.
Continue to focus on feed to drive profitability in Indonesia
- - Read this at SGinvestors.io -
- To tackle the issue of weak broiler and DOC prices, Japfa's management believes that reducing its breeding capacity would be a better alternative to reducing its commercial farming operations.
Vietnam swine set to yield higher productivity
- Read more at SGinvestors.io.
Above is the excerpt from research report by CGSI Research.
Clients of CGS International may access the full report in PDF @ https://itrade.cgsi.com.sg/.
TAY Wee Kuang CGS International Research | https://itrade.cgsi.com.sg 2024-03-05
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