The stock of listed poultry companies is projected to remain positive in the second half of this year. The performance of issuers from the animal feed and broiler segments grew well.
Ciptadana Sekuritas Asia analyst, Michael Filbery said if the performance of this issuer received support average selling price (ASP) feeds since the first quarter of 2022.
However, it is still estimated that its potential performance will also experience sales pressure in the segment day old chicken (DOC). This is because the price is relatively decreased.
The increase in broiler and feed prices has supported the stock of listed poultry companies, which are now also suppressing inflation. So the potential to suppress people’s purchasing power.
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Poultry Issuer Shares Increase
On the Indonesia Stock Exchange (IDX) each issuer is divided into 9 sectors. The division is based on the classification system that IDX has created itself.
The purpose of this division is to make it easier for investors to make investment decisions through the sector they are running. The increase in poultry issuers has also reduced purchasing power.
Although it is possible to passing higher cost to ASP, but consumer purchasing power remains a consideration. This helps inflation come in higher than expected to narrow margins for poultry issuers.
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Top Pick Stock
Poultry issuer stocks have many interesting recommendations. However, there is one stock that became the top pick, namely PT Japfa Comfeed Indonesia Tbk (JPFA).
JPFA’s shares are quite attractive and get support from the earnings performance in the first quarter of this year. The performance provided exceeded expectations and the sales performance was quite solid.
In the first quarter of this year, JPFA’s shares recorded net sales of Rp 12.14 trillion. Revenue increased by 12.61% from the previous period.
However, the cost of goods also increased, resulting in a net profit of Rp 603.73 billion. It is actually lower than the first quarter of last year, which was Rp. 858.66 billion.
It is worth if JPFA shares offer potential upside which is quite high than some other poultry issuers. For this reason, JPFA shares are recommended with a target price of Rp 2,000 per share.
But apart from that, there are other stock buy recommendations, namely PT Malindo Feedmill Tbk (MAIN). The target share price is Rp 760 per share.
As for the stock hold, it comes from PT Charoen Pokphand Indonesia Tbk (CPIN) with a target price of Rp 5,000 per share.
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List of Poultry Shares on IDX
Considering the serious increase in stocks, it also had an impact on other things. One of them is the intensity of consumer purchases which actually decreases.
Poultry stocks or the provision of animal feed and processed food are quite recommended, including:
- Japfa Comfeed Indonesia Tbk (JPFA)
- Charoen Pokphand Indonesia Tbk (CPIN)
- Sreeya Sewu Indonesia Tbk (SIPD)
- Widodo Makmur Unggas Tbk (WMUU), and
- Malindo Feedmill Tbk (MAIN).
Well, some pretty interesting stock lists above are included in the listed poultry companies recommended. (R10/HR-Online)