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Strength
Limited upside for soybean meal prices due to higher-than-average 2025 production growth estimates from Brazilian farmers (+8.2% YoY, vs. 5Y Avg: +1.4% YoY), boosting profit margins; continued low GPS import quota in 2025 (560k) and weekly PS culling to help support DOC and live bird prices
Weakness
Given that corn constitutes a large part of the poultry industry’s COGS (41%), readjustment of corn prices to IDR 5,500/kg (+10%, effective 1 February 2025) may pressure the sector’s profitability margins
Opportunity
In 2025, the government's free meal program will add 637k tons or +13% higher to Indonesia's total chicken sales volumes of 5,579k tons; this should allow for poultry players to outperform the market this year
Threat
Weakened purchasing power may lead to unexciting growth or zero-sum outcome; IDR depreciation may cause higher raw materials resulting in margin squeeze; recent market outperformance by some poultry players could trigger profit-taking from investors
Samuel Sekuritas Indonesia is a leading Indonesian securities brokerage firm. Established in 1997, the firm has grown to become one of the most respected and trusted financial services companies in the country. With a wide range of services and products, Samuel Sekuritas Indonesia has become a trusted partner to many investors, both institutional and individual.
The company offers a variety of financial services, including equity, debt and derivative securities brokerage services, research and portfolio management, asset management and capital market services, as well as a range of other investment solutions. Samuel Sekuritas Indonesia is also a leader in providing financial education and training, and has established itself as a leading provider of investor relations services.
The company has a strong research capability and is committed to providing its clients with up-to-date and reliable market analysis and recommendations. It also has a team of experienced and knowledgeable professionals who are dedicated to providing quality service to its clients. As a result, Samuel Sekuritas Indonesia has become a preferred partner for many investors in Indonesia.
In addition to its financial services, Samuel Sekuritas Indonesia also offers a range of other services, such as corporate finance and advisory services, mergers and acquisitions, and venture capital.
