Malindo Feedmill Indonesia (MAIN.IJ Rp920; BUY TP Rp1,700) FY25 Earnings Beat on Strong Poultry Prices and Resilient Feed Margin

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Malindo Feedmill Indonesia (MAIN IJ)

FY25 Earnings Beat on Strong Poultry Prices and Resilient Feed Margin

MAIN booked NP of Rp258bn in 4Q25 (+37% qoq, +100% yoy), bringing FY25 NP to Rp394bn (-19% yoy), above our estimate.
The strong earnings were driven by revenue expansion across segments as well as qoq margin improvement except feed.
Maintain BUY with a higher TP of Rp1,700 as we raise FY26F EBITDA by 13%, with robust 1Q26 earnings as a near-term catalyst.

Above estimate FY25 bottom line on strong margin

MAIN posted a record-high quarterly net profit of Rp258bn in 4Q25 (+137% qoq, +100% yoy), bringing FY25 net profit to Rp394bn (-19% yoy from FY24’s high base), above our estimate (144% of FY25F). The strong earnings were driven by revenue expansion across segments as well as qoq margin improvement except for feed. Gross operating margin expanded to 8.3% (+416bps qoq, +300bps yoy), benefiting from higher poultry prices during the quarter, partly offset by higher opex (+36% qoq, +19% yoy). Despite higher revenues, feed OPM remained flat qoq at 4.7%, as higher raw material costs were likely passed through via higher ASP.

FY25 bottom line beat on strong margin

Driven by higher ASP, DOC revenue rose to Rp648bn (+17% qoq, +11% yoy), while OPM increased significantly to 25.7% in 4Q25. Also supported by prices, the broiler segment’s OPM further expanded to 6.8% in 4Q25, from solid 3.1% in 3Q25. The processed food segment still recorded operating losses, but these narrowed by nearly half to Rp9bn in 4Q25.

Revised FY26/27F net profits by +51/+46%

Following the strong FY25 results, we revised our FY26/27F net profit forecast by +51%/+46%. We expect higher LB margin (3.1% in FY26 vs. 1.1% in FY25), while feed and DOC margins are expected to moderate slightly to 5.3% and 3.7%, respectively. Our revised forecasts imply FY26 EBITDA/net profit growth of +9%/+10%.

Maintain BUY with a higher TP of Rp1,700

We maintain our Buy rating with a higher TP of Rp1,700 (from Rp1,500 prev.) based on revised FY26F EV/EBITDA multiple of 5.0x (5-year average) implying 8.8x FY26F PE ratio. Risks to our view are rising raw material costs and the discontinuation of MBG. Tactical (3M) view: OW. Despite the seasonally weaker LB prices post-Lebaran, we expect supply-demand dynamics to stay favorable, with strong 1Q26 earnings acting as a near-term catalyst.

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