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.

Equity Bottom-Up

<ul><li>Core net profits recorded 5-fold growth to Rp149bn in FY23, beating our forecast, supported by feed business margin expansion.</li><li>We continue to expect a slight improvement in the feed margin in FY24F from normalization of weather post El-Nino in FY23. </li><li>Maintain Buy rating with a higher TP of Rp750 (from Rp650 prev.) on its attractive earnings growth prospects and undemanding valuation.</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.

Core net profits recorded 5-fold growth to Rp149bn in FY23, beating our forecast, supported by feed business margin expansion.We continue to expect a slight improvement in the feed margin in FY24F from normalization of weather post El-Nino in FY23. Maintain Buy rating with a higher TP of Rp750 (from Rp650 prev.) on its attractive earnings growth prospects and undemanding valuation.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.

Malindo Feedmill Indonesia  - Feed Business Remains the Backbone of Earnings

<ul><li>We expect MAIN to deliver another strong earnings growth in FY24F on prospect of sustained strength of its feed business</li><li>We raise our FY24/25F EBITDA and net profit by 16/3% and 43/11%, and our EV/EBITDA-based TP to Rp850 (from Rp550 prev.), and maintain our Buy rating on the stock.</li><li>Short-term headwinds in 4Q23 for the commercial farming business.</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 expect MAIN to deliver another strong earnings growth in FY24F on prospect of sustained strength of its feed businessWe raise our FY24/25F EBITDA and net profit by 16/3% and 43/11%, and our EV/EBITDA-based TP to Rp850 (from Rp550 prev.), and maintain our Buy rating on the stock.Short-term headwinds in 4Q23 for the commercial farming business.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.

Malindo Feedmill Indonesia (MAIN.IJ ) - Expect Robust Feed Margin to Support FY24 Earnings

<ul><li>We expect MAIN to deliver another strong earnings growth in FY24F on prospect of sustained strength of its feed business.</li><li>We raise our FY24/25F EBITDA and net profit by 16/3% and 43/11%, and our EV/EBITDA-based TP to Rp850 (from Rp550 prev.), and maintain our Buy rating on the stock.</li><li>Short-term headwinds in 4Q23 for the commercial farming business.</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 expect MAIN to deliver another strong earnings growth in FY24F on prospect of sustained strength of its feed business.We raise our FY24/25F EBITDA and net profit by 16/3% and 43/11%, and our EV/EBITDA-based TP to Rp850 (from Rp550 prev.), and maintain our Buy rating on the stock.Short-term headwinds in 4Q23 for the commercial farming business.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.

Malindo Feedmill Indonesia (MAIN.IJ) - Expect Robust Feed Margin to Support FY24 Earnings

<ul><li>MAIN booked core net profits of IDR 83 billion in 2Q23, wiping out most of its 1Q23 losses of IDR 86 billion (2Q22: IDR 23 billion core net losses)</li><li>The 1H23 core net losses of IDR 4 billion beat our estimate and the consensus for higher losses in FY23F</li><li>We maintain our BUY call on the company with an unchanged TP of IDR550.Strong turnaround in profitability.MAIN booked operating profits of IDR 104 billion in 2Q23</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.

MAIN booked core net profits of IDR 83 billion in 2Q23, wiping out most of its 1Q23 losses of IDR 86 billion (2Q22: IDR 23 billion core net losses)The 1H23 core net losses of IDR 4 billion beat our estimate and the consensus for higher losses in FY23FWe maintain our BUY call on the company with an unchanged TP of IDR550.Strong turnaround in profitability.MAIN booked operating profits of IDR 104 billion in 2Q23Content 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.

Malindo Feedmill Indonesia (MAIN IJ) - Positive earnings, turnaround from losses

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>On March 8, <a href="https://www.bloomberg.com/news/articles/2024-03-08/top-asia-poultry-firm-japfa-owners-said-to-mull-go-private-deal?embedded-checkout=true" target="_blank" rel="noopener">Bloomberg reported</a> that <a href="https://www.smartkarma.com/entities/japfa-ltd" target="_blank" data-smartkarma-citation="entities:15597:1" rel="noopener">Japfa Ltd (JAP SP)</a> owners were considering taking it private and started talks about a loan of around US$150 million. </li>
<li>Japfa has faced ongoing profitability issues since 2022 due to cost-of-living pressures. Privatisation interest is unsurprising, as the shares have been down 72% over the last three years. </li>
<li>An attractive premium would be required, irrespective of the offer structure. At a S$0.26 offer (20% premium to last close), Japfa would trade in line with peer multiples.  </li>
</ul>


On March 8, Bloomberg reported that Japfa Ltd (JAP SP) owners were considering taking it private and started talks about a loan of around US$150 million. 
Japfa has faced ongoing profitability issues since 2022 due to cost-of-living pressures. Privatisation interest is unsurprising, as the shares have been down 72% over the last three years. 
An attractive premium would be required, irrespective of the offer structure. At a S$0.26 offer (20% premium to last close), Japfa would trade in line with peer multiples.  


Japfa (JAP SP): Evaluating a Potential Privatisation

Indonesia

PT Malindo Feedmill Tbk produces animal feeds and breeds commercial day-old chicks.

Malindo Feedmill (MAIN IJ)

Malindo Feedmill Indonesia - Feed Business Remains the Backbone of Earnings

Core net profits recorded 5-fold growth to Rp149bn in FY23, beating our forecast, supported by feed business margin expansion. We continue to...

BRI Danareksa Research

Malindo Feedmill Indonesia (MAIN.IJ ) - Expect Robust Feed Margin to Support FY24 Earnings

We raise our FY24/25F EBITDA and net profit by 16/3% and 43/11%, and our EV/EBITDA-based TP to Rp850 (from Rp550 prev.), and maintain our Buy...

BRI Danareksa Research

Malindo Feedmill Indonesia (MAIN.IJ) - Expect Robust Feed Margin to Support FY24 Earnings

We expect MAIN to deliver another strong earnings growth in FY24F on prospect of sustained strength of its feed business. We raise our FY24/25F...

BRI Danareksa Research

Malindo Feedmill Indonesia (MAIN IJ) - Positive earnings, turnaround from losses

MAIN booked core net profits of IDR 83 billion in 2Q23, wiping out most of its 1Q23 losses of IDR 86 billion (2Q22: IDR 23 billion core net...

BRI Danareksa Research

Japfa (JAP SP): Evaluating a Potential Privatisation

An attractive takeover premium would be required, irrespective of the offer structure. Funding could be an issue due to the high current leverage.

Arun George