According to Tay in his May 6 note, apart from better selling prices, prices of key feed ingredients, such as soybean meal and corn have eased to their lowest levels since Jan 2022, when the war between Russia and Ukraine broke out.
Tay Wee Kuang of CGS International has maintained his "add" call along with a higher target price of 37 cents from 26 cents for Japfa (SGX:UD2
) , following much-improved earnings for its 1QFY2024.
Revenue for the three months ended March increased by 11.6% y-o-y to US$1.1 billion on better selling prices. From a loss of US$37.9 million, Japfa reported a core net profit of US$13.4 million, thanks to lower costs.
