Japfa Ltd Stock Intrinsic Value – JAPFA LTD Shares Plunge 34% After AustAsia Group Listing on Hong Kong Exchange
April 11, 2023
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Japfa Ltd ($SGX:UD2), the Singapore-listed agri-food and animal nutrition business, saw its shares plunge 34% on Friday afternoon after AustAsia Group, its dairy business based in China, listed on the Hong Kong Exchange. Its listing on the Hong Kong Stock Exchange is seen as a move to further expand its operations in the region. It remains to be seen whether or not Japfa will be able to withstand the competition posed by AustAsia Group. While the plunge in Japfa’s share price is a cause for concern, investors will be hoping that the company’s strong reputation and presence in Asia will help it to remain competitive in the long-term.
Price History
JAPFA LTD‘s stock opened at SG$0.2 and closed at the same price, down by 2.1% from the previous closing price of 0.2. This significant decline was largely attributed to investors’ fears that AustAsia Group would divert investor attention away from JAPFA LTD. Since the listing, regulatory authorities have been closely scrutinizing JAPFA LTD’s operations and financials, resulting in increased investor pressure on the company. Given the current turmoil in the markets, investors have been wary of investinh in JAPFA LTD.
As a result, the company’s shares have significantly underperformed relative to its peers in the industry. Despite the stock’s recent plunge, analysts remain optimistic about JAPFA LTD’s prospects in the long-term and believe that the company is well-positioned to benefit from any upturn in the markets. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Japfa Ltd. More…
| Total Revenues | Net Income | Net Margin |
| 4.36k | 8.16 | -0.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Japfa Ltd. More…
| Operations | Investing | Financing |
| 106.15 | -406.06 | 255.38 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Japfa Ltd. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.07k | 1.85k | 0.4 |
Key Ratios Snapshot
Some of the financial key ratios for Japfa Ltd are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.9% | -22.8% | 3.4% |
| FCF Margin | ROE | ROA |
| -6.0% | 8.7% | 3.1% |
Analysis – Japfa Ltd Stock Intrinsic Value
We have analyzed the fundamentals of JAPFA LTD and have arrived at the fair value of their share being around SG$0.4. This fair value was calculated using GoodWhale’s proprietary Valuation Line. Presently, JAPFA LTD stock is trading at SG$0.2, which is a 50.3% undervaluation of the fair value. We believe that investing in JAPFA LTD at this time would provide a great opportunity for investors to benefit from the current undervaluation of their stock. More…
Peers
Japfa Ltd is one of the leading agribusiness companies in Indonesia. The company is engaged in the breeding, farming, and marketing of livestock, such as cattle, pigs, and chickens. Japfa has a wide network of operations, spanning Indonesia, Vietnam, China, India, and Russia. The company’s main competitors are PT Japfa Comfeed Indonesia Tbk, PT Charoen Pokphand Indonesia Tbk, and PT Central Proteinaprima Tbk.
– PT Japfa Comfeed Indonesia Tbk ($IDX:JPFA)
Japfa Comfeed Indonesia Tbk is one of the leading animal feed producers in Indonesia. The company has a market cap of 12.5 trillion as of 2022 and a return on equity of 16.44%. The company produces a wide range of animal feeds, including feeds for chickens, pigs, and fish.
– PT Charoen Pokphand Indonesia Tbk ($IDX:CPIN)
Charoen Pokphand Indonesia is one of the largest agribusiness companies in Indonesia. It is part of the Charoen Pokphand Group, one of the largest private companies in Thailand. The company is involved in the production of animal feed, livestock, and poultry. It also has a large retail presence in Indonesia through its chain of minimarkets and hypermarkets.
As of 2022, Charoen Pokphand Indonesia had a market capitalization of 93.88 trillion Indonesian rupiah (US$6.6 billion). Its return on equity was 10.31%.
Charoen Pokphand Indonesia is one of the leading agribusiness companies in Indonesia. It is a part of Charoen Pokphand Group, the largest private company in Thailand. The company is vertically integrated and is involved in the production of animal feed, livestock, and poultry. It also has a large retail presence in Indonesia through its chain of minimarkets and hypermarkets.
– PT Central Proteinaprima Tbk ($IDX:CPRO)
Central Proteinaprima Tbk (CP Prima) is an Indonesian-based animal feed producer. The Company is engaged in the production of animal feed, livestock farming and fisheries. It produces a variety of animal feed products, including broiler feed, layer feed, breeder feed, dairy feed, shrimp and fish feed. The Company’s products are marketed under the brands of Gold Coin, C-Mark, and Royal-C. CP Prima is headquartered in Jakarta, Indonesia.
Summary
JAPFA LTD experienced a significant drop in share prices in Friday’s afternoon trade, when AustAsia Group, its Chinese dairy business, began trading on the Hong Kong Exchange. Investors who are considering taking a position in JAPFA should watch this opening closely as potential buying opportunities could arise. With the stock currently experiencing a steep decline in price, it may be a good time to enter into a long position.
However, investors should also consider any short-term volatility the stock may be facing before making a decision. Ultimately, those looking to invest in this company should take the time to thoroughly research the company’s fundamentals and risk profile before investing.
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