- We reinstate coverage on Japfa (SGX:UD2) with BUY rating, on expectations that the turnaround seen in its operating profits in 1Q24 can be sustained through 2024, with potential 37% upside to our Japfa target price of S$0.45.
On cusp of a sustained turnaround
- - Read this at SGinvestors.io -
- it should benefit from a turnaround in the Vietnam business, and
- the market yet to price in the recovery with valuations attractive at 6.9x/ 4.3x FY24F/ 25F P/E, below peers’ average of ~12x.
Upcoming 2Q24 results could provide confidence.
- Based on market prices of broiler and swine prices in its key markets, we expect to see further affirmation of this turnaround from its upcoming 2Q24 earnings.
- - Read this at SGinvestors.io -
- For Vietnam, we project its FY24F operating profit to turn around from a loss of US$27mil to US$43mil.
Market has yet to fully price in the turnaround for Japfa Ltd.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Zheng Feng CHEE DBS Group Research | Andy SIM CFA DBS Research | https://www.dbs.com/insightsdirect/ 2024-07-26
Read also DBS's most recent report:
2024-08-22 Japfa - More Legs To Run; Limited Downside On Equal Access Offer.
Price targets by other brokers at Japfa Target Prices.
Listing of research reports at Japfa Analyst Reports.
Relevant links:
Japfa Share Price History,
Japfa Announcements,
Japfa Dividends & Corporate Actions,
Japfa News Articles
