XA Update Report | PT JPFA: PT Japfa Comfeed Indonesia Tbk – Roosting a Record Quarter — Normalization Ahead
By Steven Willie ( Research Associate)
10-June-2026
JPFA’s 1Q26 posted consolidated revenue surging +24% YoY to IDR 17.7 tn, representing 26% of our full-year FY26 forecast. Poultry Breeding posted the strongest expansion at +35% YoY (+2% QoQ). Commercial Farm grew +26% YoY (flat QoQ). Poultry Processing advanced +26% YoY (+10% QoQ). Animal Feed grew a solid +19% YoY (flat QoQ). Trading & Others contributed +11% YoY (+5% QoQ). The one relative laggard was Aquaculture, which grew a modest +4% YoY (-16% QoQ). GPM widened to 26% in 1Q26, (vs. 19% in 1Q25 / 25% in 4Q25). OPM similarly recovered to 15% (vs. 8% in 1Q25 / 13% in 4Q25). Most notably, NPM expanded to 10% (vs. 5% in 1Q25 / 9% in 4Q25), translating into a record net profit of IDR 1.82 tn (+167% YoY) — equivalent to 44% of both our and consensus FY26F estimates.
🔹 1Q26 Financial Performance
• Record quarter delivered — broad-based revenue beat on strong poultry prices. JPFA’s 1Q26 posted consolidated revenue surging +24% YoY to IDR 17.7 tn, representing 26% of our full-year FY26 forecast. The robust growth was primarily driven by elevated ASP and higher volumes, underpinned by a favourable poultry pricing environment in the quarter.
• All segments contributed positively; Poultry Breeding led the charge. The growth was broadbased across all business segments. Poultry Breeding posted the strongest expansion at +35% YoY (+2% QoQ). Commercial Farm grew +26% YoY (flat QoQ). Poultry Processing advanced +26% YoY (+10% QoQ). Animal Feed grew a solid +19% YoY (flat QoQ). Trading & Others contributed +11% YoY (+5% QoQ). The one relative laggard was Aquaculture, which grew a modest +4% YoY (-16% QoQ).
• Margin expansion across the board — net profit hit an all-time record. GPM widened to 26% in 1Q26, (vs. 19% in 1Q25 / 25% in 4Q25), as higher ASPs outpaced input cost increases. OPM similarly recovered to 15% (vs. 8% in 1Q25 / 13% in 4Q25). Most notably, NPM expanded to 10% (vs. 5% in 1Q25 / 9% in 4Q25), translating into a record net profit of IDR 1.82 tn (+167% YoY) — equivalent to 44% of both our and consensus FY26F estimates.
🔹 Near-Term Outlook: Post-Lebaran Normalization
• Poultry prices have retreated post-Lebaran, as expected. Following the seasonal peak in 1Q26, poultry prices have normalized in line with post-Lebaran patterns. Livebird prices have declined 12–14% year-to-date to the IDR 21,000–22,000/kg range as of early June 2026. On a quarterly average basis, 2Q26 livebird prices are tracking approximately IDR 23,000/kg, down ~9% QoQ from IDR 25,000/kg in 1Q26. Similarly, broiler carcass prices have pulled back 6–7% ytd to around IDR 36,000–37,000/kg, with the 2Q26 quarterly average at approximately IDR 37,500/kg versus IDR 40,000/kg in 1Q26 — a ~7% QoQ decline.
• Supply overhang persists, driven by seasonal and structural factors. On the supply side, the Ditjen PKH has flagged signs of oversupply in the post-Lebaran period, estimated at 5–10% above normal weekly demand — concentrated particularly in Java. We view the demand normalization phase will likely persist through 3Q26, consistent with typical mid-year seasonal patterns.
🔹 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 forward P/E of 9.3x based on our FY26F earnings. Our overall outlook remains intact, backed by JPFA’s integrated business model that provides resilience through commodity cycles. We also favour the stock at current levels — trading at 4.3x P/E, near the -1 standard deviation of its 3-year P/E band — as a compelling entry point. Longer term, we see JPFA as a key beneficiary of Indonesia’s protein transition, with its downstream processing pivot and low-cost integrated operations anchoring both growth and through-cycle profitability.
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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
