XA Update Report | PT Japfa Comfeed Indonesia Tbk. (JPFA) – Strutting Record Earnings from Rising Poultry Prices
By Steven Willie (Research Associate)
06-Mar-2026
JPFA delivered a solid revenue performance in FY25, reaching IDR 60.7 tn (+9% YoY), representing 103% of our FY25F estimates. The strong full-year performance was primarily supported by a robust 4Q25 topline with +21% YoY (+13% QoQ). Higher ASP and improved volumes across all business segments toward year-end accounted for the hefty 29% contribution in 4Q25 sales to FY25. 4Q25 operating margin expanded to 13% (vs. 11% in 3Q25) despite OPEX rising +35% QoQ, supported by the strong topline momentum. As a result, FY25 EBITDA surpassed IDR 7.0 tn for the first time, marking a new record high. JPFA also posted an all-time-high record of 4Q25 net profit at IDR 1.6 tn (+73% YoY / +36% QoQ), bringing FY25 net profit to an all-time high of IDR 4.0 tn (+33% YoY), achieving 112% run-rate to our FY25F estimates.
🔹 FY25 & 4Q25 Financial Performance
• Strong FY25 revenue performance, exceeding our estimates. JPFA delivered a solid revenue performance in FY25, reaching IDR 60.7 tn (+9% YoY), representing 103% of our FY25F estimates. The strong full-year performance was primarily supported by a robust 4Q25 topline with +21% YoY (+13% QoQ). Higher ASP and improved volumes across all business segments toward year-end accounted for the hefty 29% contribution in 4Q25 sales to FY25.
• Broad-based revenue growth across all segments. Feed segment revenue rose +29% YoY (+18% QoQ), while Poultry Breeding also expanded +29% YoY (+24% QoQ). Commercial Farm revenue increased +23% YoY (+15% QoQ), supported by stronger broiler prices. Meanwhile, Poultry Processing & Consumer Products recorded +17% YoY (+7% QoQ) growth, followed by Aquaculture at +14% YoY (+8% QoQ) and Trading & Others at +19% YoY (+7% QoQ).
• Margin expansion supported by stronger ASP despite higher input costs. Despite higher corn prices and slightly elevated SBM prices in 4Q25, feed segment margin improved to 9.4% (vs. 8.6% in 3Q25). Meanwhile, Poultry Breeding and Commercial Farm margins expanded to 24.4% (vs. 20.6% in 3Q25) and 9.9% (vs. 5.5% in 3Q25), respectively, largely driven by stronger poultry ASP. However, Poultry Processing & Consumer Products margin slightly declined to 2.1% due to higher input costs.
• Profitability reached all-time high on stronger topline momentum. JPFA’s 4Q25 operating margin expanded to 13% (vs. 11% in 3Q25) despite OPEX rising +35% QoQ, supported by the strong topline momentum. As a result, FY25 EBITDA surpassed IDR 7.0 tn for the first time, marking a new record high. JPFA also posted an all-time-high record of 4Q25 net profit at IDR 1.6 tn (+73% YoY / +36% QoQ), bringing FY25 net profit to an all-time high of IDR 4.0 tn (+33% YoY), achieving 112% run-rate to our FY25F estimates.
🔹 Continued Uptrend in Chicken Prices in 1Q26 and Potential Cost Pressures in FY26-FY27
• Chicken prices remain elevated ahead of lebaran. As of early March, the average live broiler price has already begun its seasonal increase by ~5% YTD to IDR 26,364/kg ahead of the lebaran holidays, according to data from the Ministry of Agriculture, above the government’s reference price of IDR 25,000/kg. Meanwhile, chicken carcass prices reached IDR 40,192/kg, rising +4.37% MoM from IDR 38,509/kg, reflecting sustained demand momentum in the domestic market.
• Rising GPS import quota may increase supply over the medium term. Under the US–Indonesia trade agreement, the government plans to import 580 thousand Grand Parent Stock (GPS) poultry from the United States. The GPS import quota for FY26 has been increased to 800k from 580k in FY25 to support the government’s poultry expansion program. While the policy could strengthen long-term poultry sector production capacity, we believe it may increase DOC and broiler supply over the next 12–24 months should demand growth fail to fully absorb the additional supply. As a result, we expect industry margins to gradually normalize in FY26, with GPM at 20.7%, OPM at 9.6%, and NPM at 6.2%, leading to FY26F net profit of IDR 4.2 tn.
🔹 BUY Recommendation with Target Price at IDR 3,300/Share
• We maintain our BUY rating on JPFA with a target price of IDR 3,300, implying a potential upside of 44.7% and an implied forward P/E of 9.29x based on our FY26F earnings. This stands at the current poultry sector average valuation P/E of 9.30x. Currently, JPFA is trading at an undervalued 6.68x P/E. We also favor JPFA due to its distribution network in modern markets to support domestic sales distribution in its 5-year plan to strengthen its poultry processing and consumer products segment.
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NH Korindo Sekuritas Indonesia berizin dan diawasi Otoritas Jasa Keuangan (OJK). Untuk informasi lebih lanjut, anda dapat menghubuni CS kami via email CSO@nhsec.co.id
