JPFA - Continuous Improvements in 9M26F

KBVS Update
Tuesday, 08 September 2026

JPFA - Continuous Improvements in 9M26F
(Maintain BUY, with higher TP IDR3,100)

* Upgraded our ‘26F revenue and earnings for Japfa Comfeed Indonesia' (JPFA) and expect its ‘26F revenue and earnings to grow by 12.1% yoy and 18.2% yoy, to IDR68.04 tn (+2.6% from prior) and IDR4.73 tn (+10.1% from prior), on continuous efficiency improvements, with better demand and ASP for chicken (DOC & LB) in 2H26F amid MBG’ continuation and seasonal festivities.

* We expect JPFA’ revenue in 9M26F to reach IDR51.37 tn (+19.2% yoy) or around 75.5% of our ‘26F revenue,. In 1H26, JPFA' revenue grew 28.7% yoy on better DOC’ and LB’ ASP yoy, amidst softer chicken (DOC & LB) demand qoq, which came above both ours’ (53.3%) and cons’ (54.9%) expectations.    

* We expect JPFA’ earnings in 9M26 to reach IDR3.63 tn (+50.4% yoy) or around 76.6% of our ‘26F earnings. In 1H26, JPFA’ earnings significantly grew 100.2% yoy, were above ours’ (57.5%) and cons’ (59.8%).

* All in all, we expect JPFA’ gross, EBIT and net margin in 9M26F to reach 21.7% (+150bps yoy), 10.7% (+170bps yoy), and 7.1% (+150bps yoy). In 1H26, JPFA’ gross, EBIT and net margin reached 21.6% (+240bps yoy), 10.6% (+300bps yoy), and 7.0% (+250bps yoy), respectively.

* Maintain BUY on JPFA with higher TP of IDR3,100/share, implying 7.7x ‘26F P/E. Currently, JPFA trades at 5.7x ‘26F P/E or around -0.75stdev of its 5 years’ mean P/E.

Regards,
Andre Suntono - KBVS Research team