CPIN - Solid 1H26 Results, Still Came Above

KBVS Update
Thursday, 06 Aug 2026

CPIN - Solid 1H26 Results, Still Came Above
(Maintain BUY, with TP IDR5,250)

* Charoen Pokphand Indonesia’ (CPIN) earnings reached IDR1.13 tn (+211.1% yoy/-56.2% qoq) in 2Q26 on better DOC’ and LB’ ASP with better cost management, yoy, and a significant one-off forex gain. As a result, CPIN’ earnings significantly grew to IDR3.71 tn (+95.1% yoy) in 1H26, which came above ours’ (60%) and cons’ (72%) expectations.

* CPIN’ revenue reached IDR19.47 tn (+26.8% yoy/-2.4% qoq) in 2Q26 on better DOC’ and LB’ ASP yoy, amidst slower chicken (DOC & LB) demand qoq. As a result, CPIN’ revenue grew 19.2% yoy to IDR39.42 tn in 1H26, which came above both ours’ and cons’ expectations at 52%.

* All in all, CPIN’ gross, EBIT and net margin expanded to 17.6% (+360bps yoy), 11.7% (+410bps yoy) and 9.4% (+370bps yoy), respectively in 1H26 on better chicken’ (DOC & LB) demand and ASP with better cost management and a significant one-off forex gain, despite higher LC and SBM prices.

* Thus, maintain our ‘26F revenue and earnings for CPIN as we still expect CPIN’ revenue and earnings to grow by 8% yoy and 8.9% yoy, respectively in ‘26F.

* Maintain BUY on CPIN with TP of IDR 5,250/share, which implies 14x ‘26F P/E. Currently, CPIN is trading at 8.3x ‘26F P/E or around -1.25stdev of its 5 years’ mean P/E.

Regards,
Andre Suntono - KBVS Research team