External broker reports(aggregated public sources), BRI Danareksa Research

BRI Danareksa Research

External broker reports(aggregated public sources)

As a one-stop financial solution with the vision to be the most valuable securities house, BRI Danareksa Sekuritas (BRIDS) has maintained an excellent track record and extensive experience in the capital market as an underwriter, broker, and financial advisor for individual, institutional, foreign and domestic, private and government clients. Established in 1992, PT Danareksa Sekuritas is a securities company that performs activities as a securities broker, underwriter, or arranger and financial advisor.

Thematic (Sector/Industry)

<ul><li>We continue to forecast that integrators will report profit growth of 109%/10% for FY24/FY25F, supported by margin expansion.</li><li>We expect a lower feed margin for FY25F but to be offset by a higher margin in the commercial and breeding farm business.</li><li>Maintain OW rating on sound fundamentals, cheap valuations, and less crowded positioning. Pecking order: MAIN, JPFA, CPIN.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We continue to forecast that integrators will report profit growth of 109%/10% for FY24/FY25F, supported by margin expansion.We expect a lower feed margin for FY25F but to be offset by a higher margin in the commercial and breeding farm business.Maintain OW rating on sound fundamentals, cheap valuations, and less crowded positioning. Pecking order: MAIN, JPFA, CPIN.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Poultry: FY25 Outlook: Expect Fundamentals Improvement to Drive Valuation Rerating (OVERWEIGHT)

<ul><li>We continue to see that lower feed costs and a potential rebound in chicken prices in 4Q24 will support profitability in FY24.</li><li>Low LB prices and earnings expectations provide a good entry point amid domestic funds’ current Underweight position, in our view.</li><li>We maintain our Overweight rating given: 1) robust FY24-25 earnings growth, 2) Underweight fund position, and 3) cheap valuations.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We continue to see that lower feed costs and a potential rebound in chicken prices in 4Q24 will support profitability in FY24.Low LB prices and earnings expectations provide a good entry point amid domestic funds’ current Underweight position, in our view.We maintain our Overweight rating given: 1) robust FY24-25 earnings growth, 2) Underweight fund position, and 3) cheap valuations.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Poultry: Good Entry Points Amid Low Expectations on LB Prices

<ul><li>On the back of a drop in chicken prices in 3Q24, the poultry sector has underperformed since the end of Jul24.</li><li>We reaffirm our view that lower feed costs and a potential rebound in 4Q24 chicken prices will support profitability in 2H24.</li><li>We maintain our Overweight rating given: 1) robust FY24-25 earnings growth, 2) mild fund positioning, and 3) cheap valuations.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

On the back of a drop in chicken prices in 3Q24, the poultry sector has underperformed since the end of Jul24.We reaffirm our view that lower feed costs and a potential rebound in 4Q24 chicken prices will support profitability in 2H24.We maintain our Overweight rating given: 1) robust FY24-25 earnings growth, 2) mild fund positioning, and 3) cheap valuations.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Poultry: Concern on Low Livebird Prices Is Overdone

<ul><li>Despite the potentially lower LB pricesin Suro month, we remain bullish given the expected higher margin from lower feed costs.</li><li>The relatively light position of funds suggests 2Q24 earnings beat could re-rate the sector in our view.</li><li>We maintain our Overweight rating on the sector, foreseeing higher margins to support growth. CPIN remains our top pick in the sector.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Despite the potentially lower LB pricesin Suro month, we remain bullish given the expected higher margin from lower feed costs.The relatively light position of funds suggests 2Q24 earnings beat could re-rate the sector in our view.We maintain our Overweight rating on the sector, foreseeing higher margins to support growth. CPIN remains our top pick in the sector.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Poultry: Potential Re-Rating Intact from Strong FY24-25F Earnings Growth

<ul><li>Following sector underperformance due to the weakness in LB prices, we think the recent rebound may act as a potent catalyst.</li><li>With the strong earnings growth outlook intact and the relatively light position of funds, we believe the sector could re-rate in FY24-25F.</li><li>We maintain our Overweight rating on the sector, foreseeing higher margins from lower feed costs. CPIN remains our top pick in the sector.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Following sector underperformance due to the weakness in LB prices, we think the recent rebound may act as a potent catalyst.With the strong earnings growth outlook intact and the relatively light position of funds, we believe the sector could re-rate in FY24-25F.We maintain our Overweight rating on the sector, foreseeing higher margins from lower feed costs. CPIN remains our top pick in the sector.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Indonesia

PT Charoen Pokphand Indonesia Tbk is a leading Indonesian company primarily engaged in the poultry and egg production industry. It manufactures and sells poultry feed, day-old chicks, and processed chicken products under various brands, and also operates in food processing, preservation of meat, and animal pharmaceutical products. The company was founded on July 2, 1972, and is headquartered in Jakarta, Indonesia.

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Charoen Pokphand Indonesia (CPIN IJ)

Poultry: FY25 Outlook: Expect Fundamentals Improvement to Drive Valuation Rerating (OVERWEIGHT)

We continue to forecast that integrators will report profit growth of 109%/10% for FY24/FY25F, supported by margin expansion.

BRI Danareksa Research

Poultry: Good Entry Points Amid Low Expectations on LB Prices

We continue to see that lower feed costs and a potential rebound in chicken prices in 4Q24 will support profitability in FY24.

BRI Danareksa Research

Poultry: Concern on Low Livebird Prices Is Overdone

We reaffirm our view that lower feed costs and a potential rebound in 4Q24 chicken prices will support profitability in 2H24.

BRI Danareksa Research

Poultry: Potential Re-Rating Intact from Strong FY24-25F Earnings Growth

Despite the potentially lower LB pricesin Suro month, we remain bullish given the expected higher margin from lower feed costs.

BRI Danareksa Research

Poultry - Thursday, 20 June 2024

We maintain our Overweight rating on the sector, foreseeing higher margins from lower feed costs. CPIN remains our top pick in the sector.

BRI Danareksa Research

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