According to the analyst, the group’s swine operation in Vietnam is expected to remain weak, dragged by softer swine prices due to the lingering impact of the Covid-19 pandemic and the resurgence of African Swine Fever (ASF) during 4Q2021.
DBS Group Research is downgrading its call on Japfa to “hold” from “buy” with a lower target price of 67 cents from 89 cents previously.
Despite its cheap valuation, analyst Cheria Christi Widjaja expects near term outlook to remain subdued and margin pressure may linger in 2022, as raw material and logistics costs stay elevated.
