“We believe 4QFY2024 would likely be another strong quarter, driven by Indonesia and Vietnam,” they write in their Oct 30 report, adding that Japfa’s business in Vietnam is likely to continue reporting steady profits in FY2025 due to supply constraints from the ongoing outbreak of the Asian swine flu.
DBS Group Research analysts Chee Zheng Feng and Andy Sim have increased their estimates for Japfa (SGX:UD2
) after the vertically-integrated animal protein player reported patmi of US$87.5 million ($115.1 million) for the 9MFY2024 ended Sept 30, turning around from a loss of US$22.7 million. Japfa’s core patmi for the 3QFY2024 stood at US$36 million, 20% higher y-o-y.
The analysts are keeping their “buy” call as they see more room for earnings growth before its peak.
