Japfa Comfeed Indonesia (JPFA IJ)

FY25 Results: Record Quarterly Earnings Led to All-Time High Earnings

• JPFA posted 4Q25 net profit of Rp1.6tr, bringing its FY25 to Rp4.0tr (+33% yoy), above ours and consensus (at 105%/114% of FY25F).
• Aside from higher margin in DOC and LB segments due to higher ASP and volume, feed margin expanded qoq on contained cost.
• We maintain our Buy rating with a higher TP of Rp3,300 as we adjusted FY26F EBITDA by 5.3%; potential dividend yield of 7.8%.

All-Time High Net Profit on Strong ASP and Margins

JPFA posted a record-high 4Q25 net profit of Rp1.6tr (+36% qoq, +73% yoy), bringing FY25 earnings to an all-time high of Rp4.0tr (+33% yoy), slightly above our estimate (105% of FY25F) and significantly above consensus (114% of FY25F). Gross revenue rose to Rp27.0tr (+15% qoq, +24% yoy), driven by double-digit yoy growth across all business segments, from higher ASP and volume. Gross operating margin expanded to 9.8% (+77bps qoq, +165bps yoy), benefiting from higher feed and poultry prices during the quarter, partly offset by higher opex (+33% qoq, +20% yoy).

Segmental Strength Drives 4Q25 Outperformance

In 4Q25, JPFA delivered broad-based segment improvement. Feed revenue increased 18% qoq (29% yoy), which we believe was driven by higher volume and ASP to pass through higher costs. Despite higher local corn and slightly higher SBM prices, feed margin expanded to 9.4% (3Q25: 8.6%), which we believe was supported by higher imports of corn substitutes. DOC and LB OPM increased from 20.6% and 5.5% in 3Q25 to 24.4% and 9.9% in 4Q25, respectively, driven by higher ASP. Meanwhile, processed food posted robust revenue of Rp2.8tr (+7% qoq, +17% yoy), but margin declined to 2.1% due to higher input costs.

FY26F Earnings Upgraded on Strong FY25F

We revised up our FY26F earnings by 9%, reflecting the robust FY25F results. We expect margins to remain positive across all segments, supported by a more balanced supply–demand environment. Our updated FY26F projections imply +6% EBITDA growth and +5% earnings growth.

Maintain Buy, with a TP of Rp3,300 and potential div. yield of 7.8%

We maintain Buy rating with a higher TP of Rp3,300, as we believe JPFA’s strong 4Q25 performance and 1Q26 catalysts (corn harvest, MBG rollout, and Eid seasonality) should allow sustained margins and favorable LB/ DOC price. Our TP is derived from 5-year EV/EBITDA average of 6.1x to FY26F, implying 9.2x PE. Risks to our view are extreme weather affecting local corn dan SBM supply, and further deterioration in purchasing power.

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