Analisa Saham JPFA | 1 Maret 2019

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JPFA IJ: In-line FY18 results
Michael W Setjoadi - Jessica Pratiwi - RHB Sekuritas
(JPFA IJ, Buy: IDR3,500)

The company recently reported strong 4Q18 earnings at IDR581bn (+3% QoQ, +198% YoY), translating FY18 earnings at IDR2.253trn (+126% YoY) which accounts for 103%/100% of RHB/Consensus FY18 est.

4Q18 revenue grew +0.5% QoQ and +9.7% YoY to IDR8.6trn, bringing FY18 revenue at IDR34trn (+15% YoY). In 4Q18, gross profit margin decreased 3.1% QoQ due to higher corn prices and weak broiler price in Oct-Nov'18 but still improved +2.8% YoY to 18.1%. EBIT margin also improved +2% YoY to 8.5% in 4Q18, bringing FY18 EBIT increased by 360bps YoY to 9.1%. Nevertheless, net gearing improved to 57.2%.

Stock is trading at 10x 2019F PER.