JPFA’s net profit increased 239.6% YoY to IDR3.21 trillion in FY24. The net profit growth aligned with an interest income increase of 13.45% YoY to IDR50 billion in FY24 (vs. IDR44 billion in FY23). In addition, JPFA’s interest expenses decreased by 11.98% YoY to IDR870 billion in FY24 (vs. IDR988 billion in FY23).

The Commercial Farm segment successfully booked an operating profit of IDR1.59 trillion in FY24. The Commercial Farm segment’s operating profit in FY24 marks the first profit for the segment after experiencing operating losses from 2019 to 2023. The positive performance of the Commercial Farm segment in FY24 was in line with the increase in average Live Bird prices by 9.96% QoQ or 10.38% YoY in 4Q24 to IDR20,174/Kg.

Raw material price stability can potentially drive JPFA’s profitability. The average domestic corn price in February 2025 was IDR6,360/kg, which decreased by around 1% MoM from IDR6,426/kg in January 2025. Meanwhile, the average price of Soybean Meal (SBM) was US$300/ton, which decreased by around 3% MoM from US$310/ton in January 2025.

JPFA conducted a study on nutritious meal programs in schools from May to June 2024. Overall, the study’s results can improve students’ nutritional intake, which is reflected in the reduction of the number of students with malnutrition status by 2.8%. This initiative signifies JPFA’s readiness to support and collaborate with the government in the Free Nutritious Meal program, which is currently underway in stages.

With JPFA’s performance exceeded our expectations, we increased our FY25F projection. Therefore, we maintain our Buy rating on JPFA with a higher fair value estimate of IDR2,400 per share (Expected PE at 6.83x and EV/EBITDA at 4.73x in FY25F).

By PHINTRACO SEKURITAS | Research
– Disclaimer On –