Meanwhile, raw milk prices in China for 3Q2020 stood at RMB3.7 (75 cents) per kilogram as at Sept 23, up about 3.9% q-o-q and 2.3% y-o-y, lending a positive bias to Japfa’s dairy segment, whose EBIT had already increased by some 21% y-o-y to US$19.6 million in 2QFY2020, compared to US$16.2 million in 2QFY2019.
CGS-CIMB Research is keeping its “add” recommendation on Japfa with a target price of 96 cents.
In Vietnam, swine prices rose to an average of VND80,000 ($4.68) per kilogram in July-August, up more than 100% y-o-y. This, according to analyst Cezzane See, implies a still-strong 3Q2020, with the Animal Protein Other (APO) segment EBIT having already posted an earnings turnaround in 2Q2020, from a loss in 2Q2019.
