Equity Analysis /

SG : Japfa Ltd - 2Q22F preview: likely a slight improvement

    22 June 2022
    Published byCGS-CIMB

    Reiterate Add; we maintain our SOP-based TP of S$0.81 as we expect earnings pressure to ease in the near term amid consumption recovery. Prices of proteins seem to have stabilised across the board for JAP, with the exception of DOCs in Indonesia, suggesting better market dynamics. Potential export agreement between Indonesia and Singapore could catalyse JAP’s share price but we see little impact on its business.