Johannes Salim, CFA

Event-Driven

<ul><li>Stub valuation method reveals that <a href="https://www.smartkarma.com/entities/15597" target="_blank" data-smartkarma-citation="entities:15597:1">Japfa Ltd (JAP SP)</a> is substantially undervalued (49% discount to our NAV estimates).</li><li>Major contributors are 1) 51%-owned <a href="https://www.smartkarma.com/entities/8258" target="_blank" data-smartkarma-citation="entities:8258:1">Japfa Comfeed Indonesia Tbk Pt (JPFA IJ)</a>, whose business is firmly in the up-cycle, and 2) dairy business with more steady profit growth.</li><li>Based on stub valuation and earnings cycle methods, we see a 47-56% upside potential from current share price. </li></ul>

Stub valuation method reveals that Japfa Ltd (JAP SP) is substantially undervalued (49% discount to our NAV estimates).Major contributors are 1) 51%-owned Japfa Comfeed Indonesia Tbk Pt (JPFA IJ), whose business is firmly in the up-cycle, and 2) dairy business with more steady profit growth.Based on stub valuation and earnings cycle methods, we see a 47-56% upside potential from current share price. 

Japfa Ltd: Substantially Undervalued from Stub Valuation's Perspective