XA Update Report | PT Japfa Comfeed Indonesia Tbk. (JPFA) – 1H26 Earnings Took Flight, but 2Q26 Margins Retreat

 

 

By Steven Willie

31-August-2026

 

 

JPFA’s 1H26 posted strong consolidated revenue growing +28.7% YoY to IDR 35.4 tn, in line with our estimates (52% of our FY26F forecast). All segments contributed positively, led by Trading & Others (+45.9% YoY) and Poultry Breeding (+45.4% YoY). GPM widened to 21.6% in 1H26 (vs. 19.2% in 1H25), OPM to 10.6% (vs. 7.8% in 1H25), and NPM to 7.0% (vs. 4.5% in 1H25), translating into net profit of IDR 2.5 tn (+100.2% YoY) — equivalent to 59% of our FY26F estimate. However, 2Q26 margins retreated sharply from 1Q26’s peak as broiler and DOC prices softened against still-elevated feed costs, with GPM at 17.6%, OPM at 6.5%, and NPM at 3.7% for the quarter.

 

 

🔹1H26 & 2Q26 Financial Performance

 

 

• Strong topline delivered in 1H26, as 2Q26 held flat QoQ off a high base. JPFA’s 1H26 posted consolidated revenue surging +28.7% YoY to IDR 35.4 tn, in line with our estimates and representing 52% of our full-year FY26 forecast. Revenue growth was equally robust in 2Q26 alone, up +34.2% YoY, though flat QoQ at IDR 17.6 tn, as the quarter’s momentum sustained the strong run-rate set in 1Q26.

 

 

• Broad-based segment growth across the board. Feed rose +42.4% YoY (+8.8% QoQ), Poultry Breeding +45.4% YoY (-11.5% QoQ), Commercial Farm +23.1% YoY (-10.3% QoQ), Poultry Processing +33.7% YoY (+0.9% QoQ), Aquaculture +38.8% YoY (+32.7% QoQ), and Trading & Others +45.9% YoY (+10.6% QoQ), driven by higher ASP and volumes. Export sales surged +146.1% YoY (+67.2% QoQ), while local sales grew +32.0% YoY (-1.9% QoQ).

 

 

• Margin expansion drove 1H26 net profit to a new high, though 2Q26 saw a sharp reversal. GPM widened to 21.6% in 1H26 (vs. 19.2% in 1H25), OPM to 10.6% (vs. 7.8%), and NPM to 7.0% (vs. 4.5%), lifting net profit +100.2% YoY to IDR 2.5 tn (59% of our FY26F estimates). However, 2Q26 alone saw margins reverse sharply as cost pressures resurfaced and DOC and broiler prices fell QoQ against rising COGS, with GPM falling to 17.6% (vs. 19.6% in 2Q25 / 25.5% in 1Q26), OPM to 6.5% (vs. 7.6% / 14.7%), and NPM to 3.7% (vs. 4.2% / 10.3%).

 

 

• Feed stayed the anchor; Commercial Farm swung into a loss. Feed EBIT margin held stable at 9.5% (vs. 8.6% in 2Q25 / 9.7% in 1Q26). Poultry Processing & Consumer Products improved to 6.1% (vs. 3.3% in 2Q25 / 4.7% in 1Q26), while Poultry Breeding eased to 21.4% (vs. -0.8% in 2Q25 / 29.2% in 1Q26), Aquaculture eased to 9.4% (vs. 10.9% in 2Q25 / 7.6% in 1Q26), and Trading & Others eased to 3.2% (vs. 10.2% in 2Q25 / 12.2% in 1Q26). Commercial Farm was the sole loss-making segment at -6.5% (vs. 4.7% in 2Q25 / 10.1% in 1Q26).

 

 

 

🔹 Early Price Recovery Signals in 3Q26 But Input Cost Pressures Still Persists

 

 

• Poultry prices begin recovering in July-August. Live bird prices rose +4% vs. the 2Q26 average (+8% YoY); carcass broiler prices rose +2% vs. 2Q26 (+8% YoY). Elevated input costs likely cap near-term upside, but we expect more meaningful margin recovery in 4Q26 as seasonal demand strengthens.

 

 

• Corn and soybean meal prices stay elevated in 3Q26. Corn surged +29% YoY (+16% vs. 2Q26) to a late-August average of USD 5.15/bushel, a fresh high since July 2023, on tightening global supply and US crop concerns. Soybean meal rose +10% YoY (+10% vs. 2Q26) to USD 345.9/ton. This pressures poultry margins, but we view JPFA’s Feed segment, the largest EBIT contributor, as a relative beneficiary given its cost pass-through ability.

 

 

🔹 Maintain 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/share. We maintain our BUY rating on JPFA with a target price of IDR 3,300/share. Our outlook remains intact, backed by JPFA’s integrated business model providing resilience through commodity cycles. We favour the stock at current levels, trading at 4.9x 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 growth and through-cycle profitability.

 

 

 

 

Download full report HERE.

 

 

 

 

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