ID : Charoen Pokphand Indonesia - Lebaran momentum overshadowed by higher costs

CPIN’s 4Q21 NP fell 40% yoy despite sales growth of 16%, but the result was in line with our expectations amid lower feed and broiler margins. Broiler prices have recently started to creep up ahead of Lebaran, but larger increases in corn and soybean meal prices put margins at risk, in our view. We cut FY22-23F EPS on lower margins. But we think this is priced in given that CPIN’s shares recently fell to their lowest in 1.5 years. Maintain Hold.