Chicken Prices Support Poultry Company
Solid price of broiler chicken and day old chicken (DOC) are able to boost the performance of company in the poultry sector (poultry) in 1H18. But at the same time, poultry company is still haunted the trend of a rupiah weakening. So far, up to 1H18, the weakening of the rupiah has not impacted too large. The three big players financial performance in the poultry sector, namely Japfa Comfeed Indonesia, Tbk (JPFA IJ), Charoen Pokphand Indonesia, Tbk (CPIN IJ) dan Malindo Feedmill, Tbk (MAIN IJ) obtain good performance.
Investment consolidation of Astra International around IDR20Trn
Kideco Support Indika Energy’s Stock Price
Serasi Autoraya Solid performance
WSBP Issue Bonds IDR2Trn to Build Factory in East Kalimantan
The Anticipation the Needs Liquidity, BI Open Repo SBN Regular
Rupiah Touch Level IDR15,000/USD
Take for example the JPFA, was able to obtain in revenues of IDR16.7Trn, or rose 18.19% in 1H18. Net profit for issuers is also sped up 127% so IDR1.11Trn. Analyst of Danareksa Sekuritas, Adeline Solaiman said, the impressive performance of the poultry sector issuers is not separated from the increase in the price of broiler chicken and DOC culminating in the last two quarters. This coincides with the moment of the Lebaran support demand for both types of chickens.
In fact, now the price of broiler chicken and DOC still continue rising. He called broiler chicken price rises 6.2% MoM, or 37.8% YoY to IDR22,960/Kg at the end of last July. While the average sales price or the average selling price (ASP) of broiler chicken until July has climbed 23.8% YoY to IDR20,457/Kg. In line with, DOC price rose 4.4% MoM or 44.9% YoY to IDR5,531/DOC last July. In the same period, ASP of DOC reached IDR5,065/DOC or by 24.5% YoY. “Rising prices are still going up to the beginning of the second semester is a positive thing for industrial poultry, “he added on Friday (3/8).
Media Nusantara Citra, Overhang Remains
Indopoly Swakarsa Industry Steep Learning Curve and Narrowing Margins
Bank OCBC NISP Credit Opinion (2016)
Bank OCBC NISP Bond Issuance (2015)
Indonesia 2012 Economics Strategy
Limited Improvement in 3Q17 as Household Consumption Remains Weak
In research August 3, Analyst of BCA Sekuritas, Johanes Prasetya stated, the increase in the price of broiler chicken and DOC caused the decline in supply. This allegedly as the impact of Government policy prohibits the use of Antibiotic Growth Promoters (AGP) since January 2018. AGP is antibiotics to prevent disease at a time of accelerating growth.
As a result, the risk of death of poultry so higher, because not all breeders are ready to meet these policies, especially breeders that do not have adequate facilities. “With these conditions, the price of broiler chicken and DOC will endure for the rest of this year and may rise about 5%-10% in 2019, “said Johanes. In addition to the increase in the price of broiler chicken and DOC, rupiah weakening sentiment has also become a major concern issuers-poultry sector issuers. Understandably, given the most animal feed is still imported from abroad.
Domestic Oversupply Anticipation, Semen Indonesia Export to ASEAN
Unilever Indonesia Entered the Chili Sauce Business
PBS014 Weighted Average Yield Reached 7.28%
An Attractive Yield amidst Bank Indonesia Maintain its BI 7-DRR
Indonesia FR0070 Price Boosted by Tighter Supply
Indonesia Exports and Imports Performance Declined in July
On the other hand, the increase in the price of broiler chicken and DOC not only benefits from the income and profit, but also reduces the impact of the rupiah weakening. “Chicken prices had not gone up, while the rupiah weakened, company margin decreased. The origin of the idea, 35% of the sales loads issuers poultry usually for cake of soybeans are imported from South America. When the US dollar strengthen, an automatic load soaring spending on issuers to swell.
Johanes added, conditions the more quaint if at the same price for cake of soybeans also rose. He mentions, per May 2018, the price of cake of soybeans had increased 28.9% YtD, before weakening again in early August 2018, so it costs only rise 6.8% YtD.
Heavy Equipment Push Astra International Net Profit Up 15%
Cost of Revenue Hit Astra Agro Lestari Net Profit Down 27%
WSBP Issue Bonds IDR2Trn to Build Factory in East Kalimantan
KEB Hana Third Party Fund IDR22.50Trn
The Anticipation the Needs Liquidity, BI Open Repo SBN Regular
Government Assumes the Rupiah at the Level of 15,000
Analyst of RHB Sekuritas, Michael Wilson Setjoadi presents, a ban on the import of corn as fodder for issuers poultry imposed since past 2017 also brings blessings. The reason, issuers poultry now will no longer deal with the burden of exchange rates when buying corn. Moreover, the share of corn in the burden of company sales could reach 50%. However, poultry company should still be aware of the local maize price increase trend. If there is one-quarter the price of corn in the range of IDR3,500/Kg, then at the beginning of semester two bolted so IDR4,500/Kg.