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30 August 2024

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Poultry: 1H24 Results Round-up

  • Poultry sector posted positive aggregate top-line growth in 2Q24 of +7.1% YoY (JPFA: +10.7%, CPIN: +4.4%), supported by higher live-bird and DOC prices due to voluntary culling. On the bottom line, JPFA recorded stellar growth in 2Q24 of +145.4% YoY, partly due to low-base effect in 2Q23, while CPIN booked -7.1% YoY due to processed food segment still reported losses.
  • We anticipate 2H24 results to be relatively softer, due to seasonal trends and the ongoing Suro month (July-August), which may exert downward pressure on live-bird prices, though still much improved compared to 2H23. Additionally, the potential impact of the upcoming La NiƱa in 2024 could further dampen profitability.
  • We upgrade our rating for poultry sector to OW with JPFA (BUY: TP 1,790) as our top pick. We believe favorable government policies, such as price relaxation, efforts to maintain live-bird prices above the cost of production, and lower GPS imports from 2024 onwards, will contribute to positive longer-term outlook for the sector. Downside risks: 1) weaker-than-expected demand and 2) rising raw materials costs.

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Poultry 2Q24 results

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Poultry 2Q24 results

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