Japfa Ltd Intrinsic Value Calculation – JAPFA LTD Reports Strong Earnings Results for FY2023 Q2 as of June 30 2023
August 5, 2023
☀️Earnings Overview
JAPFA LTD ($SGX:UD2) released their earnings results for Q2 of FY2023 on July 31 2023, with figures relative to June 30 2023. Revenue for the quarter totaled USD 1102.4 million, representing a year-on-year decrease of 12.0%. Net income for the quarter was USD -10.5 million, in comparison to the previous year’s quarter of USD 26.7 million.
Share Price
The company’s stock opened at SG$0.2 and closed at SG$0.2, representing a 2.1% decline from the last closing price of 0.2. The company attributed this growth to its strong focus on efficiency and cost optimization, as well as its successful expansion into new markets in Southeast Asia and the Pacific Islands. Overall, these strong earnings report from JAPFA LTD show that the company is on track for a successful fiscal year 2023, despite the current challenging global business environment. 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 |
| 4.27k | -89.44 | -1.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Japfa Ltd. More…
| Operations | Investing | Financing |
| 119.73 | -363.24 | 121.86 |
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 |
| 3.12k | 1.94k | 0.38 |
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 |
| 3.6% | -54.4% | 0.6% |
| FCF Margin | ROE | ROA |
| -4.8% | 1.9% | 0.5% |
Analysis – Japfa Ltd Intrinsic Value Calculation
GoodWhale has conducted a fundamental analysis of JAPFA LTD and has concluded that its fair value stands around SG$0.5. This was determined by our proprietary Valuation Line, which uses a combination of financial statement analysis and quantitative modelling to accurately price a stock. Currently, JAPFA LTD stock is trading at SG$0.2, which is undervalued by an approximate 59.6%. This presents an attractive investment opportunity and could be a very profitable venture for those who are willing to take the risk. More…
Peers
Japfa Ltd is one of the leading agribusiness companies in Indonesia. The company is engaged in the breeding, farming, and marketing of livestock, such as cattle, pigs, and chickens. Japfa has a wide network of operations, spanning Indonesia, Vietnam, China, India, and Russia. The company’s main competitors are PT Japfa Comfeed Indonesia Tbk, PT Charoen Pokphand Indonesia Tbk, and PT Central Proteinaprima Tbk.
– PT Japfa Comfeed Indonesia Tbk ($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 reported its financial results for the second quarter of FY2023 on July 31, 2023. The total revenue was USD 1102.4 million, a dip of 12.0% compared to the same quarter last year. Net income also suffered a significant drop from the previous year’s USD 26.7 million, coming in at USD -10.5 million. This shows a major decline in profits for the company.
Investors should closely scrutinize the company’s performance and consider potential risks before investing in JAPFA LTD. Due diligence is advised to ensure that the company is a viable investment option.
