Singapore Stock Market News

Japfa Ltd - A temporary setback

StockFanatic
Publish date: Mon, 10 Nov 2014, 12:34 PM
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• Ex biological asset losses, 3Q14 core earnings of US$12m (-3% y-o-y) were below

• Drag came from Indonesian poultry business. DOC/broiler 3Q14 EBITDA margins shrank to -18%/1% from 27%/11% as ASP plunged on oversupply, weak purchasing power

• Dairy segment's EBITDA was in line

• FY14F/15F/16F earnings cut by -33%/-17%/+4%, reduced TP to S$1.00; maintain BUY as correction is overdone
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