While 1HFY2022 results came in rather lacklustre, the results were in line with UOBKH analyst John Cheong’s estimates. Core Patmi for the first half period came in 54% lower y-o-y at US$54 million, in-line with Cheong’s expectations, forming 52% of his full-year forecast.
UOB Kay Hian (UOBKH) is keeping its “hold” recommendation on Japfa with a target price of 63 cents, following its recent 1HFY2022 ended June results announcement, which saw earnings came in 63% lower y-o-y at US$44.0 million ($60.8 million).
This was on the back of a 10% increase in revenue to US$2.5 billion, mainly driven by high poultry prices, and a 20% increase in cost of sales to US$2.1 billion. The higher increase in cost of sales was primarily due to higher costs for its farming operations, which eventually led to the drop in earnings.
