Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.<ul><li><a href='#lucror-entity-1632'>Gajah Tunggal</a></li><li><a href='#lucror-entity-8258'>Japfa Comfeed Indonesia</a></li><li><a href='#lucror-entity-30639'>Nickel Industries </a></li></ul>

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.Gajah TunggalJapfa Comfeed IndonesiaNickel Industries 

Morning Views Asia: Gajah Tunggal, Japfa Comfeed Indonesia, Nickel Industries 

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>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.

External broker reports(aggregated public sources), MNC Sekuritas

MNC Sekuritas

MNC Sekuritas, the first wholly-owned subsidiary established by the Group back in 1989, provides a complete range of services, from equity, fixed income, investment banking to providing research to optimize clients’ investments. Thus far, the company has more than 140 points of sales with over 100,000 clients. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

Japfa Comfeed Indonesia / Equity Bottom-Up

<ul><li>JPFA made a notable recovery in 1Q24, with a net profit of IDR664.8 bn (vs a net loss of IDR-7.5 bn in 4Q23 and IDR-249.9 bn in 1Q23)</li><li>The higher-than-expected net profit was primarily supported by better margins in the animal feed and poultry-related segments.</li><li>The government has extended the relaxation of the reference price regulation for commodities such as eggs, corn and broiler meat.</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.

JPFA made a notable recovery in 1Q24, with a net profit of IDR664.8 bn (vs a net loss of IDR-7.5 bn in 4Q23 and IDR-249.9 bn in 1Q23)The higher-than-expected net profit was primarily supported by better margins in the animal feed and poultry-related segments.The government has extended the relaxation of the reference price regulation for commodities such as eggs, corn and broiler meat.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.

JPFA IJ - MNC Sekuritas Equity Report June 6, 2024

<ul><li>The NFA issued a new regulation to increase the reference prices of livebirds and local corn, effective from Jun24 until amendment.</li><li>Although we view this positively, we only expect a minimum impact from reference prices on actual market prices. </li><li>We maintain our Overweight rating on the sector, foreseeing higher feed margins; CPIN remains our top pick.</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.

The NFA issued a new regulation to increase the reference prices of livebirds and local corn, effective from Jun24 until amendment.Although we view this positively, we only expect a minimum impact from reference prices on actual market prices. We maintain our Overweight rating on the sector, foreseeing higher feed margins; CPIN remains our top pick.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: New Reference Prices to Support the Industry, Albeit Unlikely to Be a Game Changer

Indonesia

PT Japfa Comfeed Indonesia Tbk manufactures animal feed, breeds and processes chickens, and operates aquaculture farms.  The Company trades its products domestically and internationally.

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Japfa Comfeed Indonesia (JPFA IJ)

Morning Views Asia: Gajah Tunggal, Japfa Comfeed Indonesia, Nickel Industries

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

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

JPFA IJ - MNC Sekuritas Equity Report June 6, 2024

JPFA made a notable recovery in 1Q24, with a net profit of IDR664.8 bn (vs a net loss of IDR-7.5 bn in 4Q23 and IDR-249.9 bn in 1Q23).

MNC Sekuritas

Poultry: New Reference Prices to Support the Industry, Albeit Unlikely to Be a Game Changer

The NFA issued a new regulation to increase the reference prices of livebirds and local corn, effective from Jun24 until amendment.

BRI Danareksa Research

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