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Japfa Ltd. (SG:UD2)
SGX:UD2
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Japfa Ltd. (UD2) AI Stock Analysis

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SG:UD2

Japfa Ltd.

(SGX:UD2)

Rating:73Outperform
Price Target:―
Japfa Ltd. receives a solid score based on its strong financial recovery, especially in profitability and cash flow improvements. The stock's valuation indicates it is undervalued, offering potential for future price gains. Technical analysis supports a positive outlook with an upward trend in price averages. However, high leverage remains a risk factor that could impact future performance. Overall, the stock is positioned for growth, but investors should be mindful of leverage risks.
Positive Factors
Earnings
Revised FY24F/25F earnings by +45%/+27% on strong margin expansion, supported by falling raw material prices, cost discipline, and muted competition.
Market Position
Japfa is a vertically integrated animal protein player with leading positions in emerging markets, which positions the company to ride on the wave of strong consumption growth.
Operational Performance
Strong 3Q24 y/y performance largely driven by continued turnaround in Vietnam business on higher swine fattening volumes, higher swine selling prices and lower operational costs.
Negative Factors
Market Concerns
Market overly concerned on lower DOC and broiler prices while missing lower input costs.
Raw Material Costs
A key risk to earnings would be a sharp or prolonged spike in raw material prices.
Share Price Reaction
Positive share price reaction was fleeting, likely due to concerns on lower broiler and DOC prices in Indonesia.

Japfa Ltd. (UD2) vs. iShares MSCI Singapore ETF (EWS)

Japfa Ltd. Business Overview & Revenue Model

Company DescriptionJapfa Ltd. is a leading agri-food company headquartered in Singapore, operating primarily in the production of animal protein and dairy products. The company has a significant presence in fast-growing Asian markets, engaging in sectors such as poultry, beef, aquaculture, and dairy. Japfa's core products include poultry feed, poultry breeding, milk, and processed food products, catering to both domestic and international markets.
How the Company Makes MoneyJapfa Ltd. generates revenue through its integrated business model that encompasses the entire value chain of animal protein production, from feed manufacturing to animal breeding, farming, and food processing. The company's primary revenue streams include the sale of poultry and aquaculture products, dairy goods, and animal feed. Japfa benefits from economies of scale and a strong distribution network, which enable it to capture significant market share in Asia. Additionally, strategic partnerships and joint ventures enhance its capabilities and market reach, contributing to its earnings.

Japfa Ltd. Financial Statement Overview

Summary
Japfa Ltd. showcased a notable recovery in financial performance in 2024, with strong revenue growth and improved profitability metrics. The balance sheet shows a healthier financial position with reduced leverage, although debt levels remain a concern. Cash flow improvements highlight operational efficiencies and effective cash management, positioning the company well for future growth. While there are areas of concern, such as leverage, the overall financial outlook is positive.
Income Statement
72
Positive
Japfa Ltd. demonstrated a positive revenue growth of 4.29% in 2024. Gross profit margin improved significantly from 11.49% to 18.79%, reflecting better operational efficiency. Net profit margin recovered from a negative position to 2.46%, showing financial improvement. The EBIT margin increased from 2.65% to 8.88%, and EBITDA margin improved to 11.08% from 4.72%. Overall, the income statement indicates a turnaround in profitability and efficient cost management.
Balance Sheet
65
Positive
The debt-to-equity ratio decreased from 1.93 to 1.47, indicating a reduction in leverage risk. Return on equity improved from -3.99% to 14.15%, showing enhanced shareholder returns. The equity ratio increased from 25.01% to 27.14%, suggesting a stronger equity position. While improvements are noticeable, the company still maintains a relatively high level of debt compared to equity, which could pose risks if not managed properly.
Cash Flow
78
Positive
Free cash flow turned positive, growing significantly from a negative position to 339.10 million, reflecting improved cash generation. Operating cash flow to net income ratio is strong at 4.25, indicating effective cash conversion from earnings. The free cash flow to net income ratio is 2.99, indicating efficient cash management and liquidity. Overall, cash flow metrics show robust improvement and operational efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.56B4.62B4.43B4.36B4.64B3.87B
Gross Profit720.08M867.99M508.79M557.52M806.79M857.58M
EBITDA306.07M511.77M209.13M307.18M519.79M515.94M
Net Income74.45M113.57M-30.80M8.16M118.83M321.97M
Balance Sheet
Total Assets3.03B2.95B3.08B3.07B4.30B3.67B
Cash, Cash Equivalents and Short-Term Investments185.60M194.55M217.02M292.60M320.69M224.37M
Total Debt1.37B1.18B1.49B1.44B1.60B1.16B
Total Liabilities1.81B1.68B1.89B1.85B2.16B1.71B
Stockholders Equity782.06M802.05M771.24M814.95M1.43B1.42B
Cash Flow
Free Cash Flow137.92M339.10M-44.86M-259.90M20.63M111.47M
Operating Cash Flow182.74M483.20M147.88M106.15M288.78M383.14M
Investing Cash Flow-43.11M-143.74M-188.66M-406.06M-258.19M-16.10M
Financing Cash Flow-43.28M-362.76M-28.28M255.38M66.69M-350.78M

Japfa Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.62
Price Trends
50DMA
0.61
Positive
100DMA
0.59
Positive
200DMA
0.48
Positive
Market Momentum
MACD
<0.01
Negative
RSI
71.04
Negative
STOCH
<0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:UD2, the sentiment is Positive. The current price of 0.62 is above the 20-day moving average (MA) of 0.61, above the 50-day MA of 0.61, and above the 200-day MA of 0.48, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 71.04 is Negative, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:UD2.

Japfa Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$10.20B9.2410.35%7.49%3.45%-22.03%
73
Outperform
$1.27B8.1114.25%3.37%3.73%―
72
Outperform
S$3.24B6.647.27%3.15%11.22%84.13%
71
Outperform
S$509.11M14.687.04%5.65%1.20%26.15%
67
Neutral
S$3.18B15.2113.43%4.39%4.41%-17.10%
62
Neutral
$18.29B11.705.84%1.88%-0.24%-23.64%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SG:UD2
Japfa Ltd.
0.62
0.32
107.07%
SG:Q01
QAF Ltd.
0.88
0.12
15.79%
SG:E5H
Golden Agri-Resources
0.26
<0.01
1.56%
SG:F34
Wilmar International
2.95
0.09
3.26%
SG:C07
Jardine Cycle & Carriage
25.80
2.06
8.66%

Japfa Ltd. Corporate Events

Japfa Comfeed Indonesia Reports Stable Shareholding Structure
May 9, 2025

Japfa Comfeed Indonesia Tbk has released its monthly shareholder registration report as of April 30, 2025. The report indicates no change in the shareholding percentages of key stakeholders, with Japfa Ltd maintaining a 55.43% stake. This stability in shareholding suggests a steady operational outlook and confidence among major shareholders, which could positively influence the company’s market position and stakeholder relations.

Japfa Ltd. Holds Eleventh Annual General Meeting
Apr 30, 2025

Japfa Ltd., a company incorporated in Singapore, held its eleventh annual general meeting at the York Hotel Singapore. The meeting was attended by key executives, including the Independent Chairman, Executive Directors, and other directors, along with shareholders and representatives from various advisory and financial services firms. The meeting confirmed a sufficient quorum and was conducted in line with the company’s commitment to good corporate governance and transparency.

Japfa Ltd. Convenes Scheme Meeting Following AGM
Apr 30, 2025

Japfa Ltd., a company incorporated in Singapore, recently held a Scheme Meeting at York Hotel Singapore. The meeting, presided over by Independent Chairman Mrs. Lim Hwee Hua, confirmed the presence of a quorum and was attended by key executives, board members, and representatives from various advisory and financial firms. The meeting was called to order following the conclusion of the Annual General Meeting, indicating ongoing corporate governance and strategic planning activities.

Japfa Ltd Secures Significant Investment Credit Facility for Indonesian Subsidiary
Apr 25, 2025

Japfa Ltd’s Indonesian subsidiary, PT Japfa Comfeed Indonesia Tbk, has secured an Investment Credit Facilities Agreement worth approximately USD 178 million with PT Bank Central Asia Tbk. This agreement aims to support general corporate and working capital purposes. The facility includes covenants ensuring the Santosa Family maintains a controlling interest in Japfa Ltd, which could impact bank facilities totaling USD 876 million if breached. This move underscores Japfa’s strategic financial management and its commitment to maintaining stability in its ownership structure, which is crucial for its operations and stakeholder confidence.

Japfa Ltd. Shareholders Approve Privatization Scheme
Apr 15, 2025

Japfa Ltd., a company incorporated in Singapore, announced the approval of its proposed privatization through a scheme of arrangement. The scheme involves the acquisition of all issued and paid-up shares by TAC 1 Pte. Ltd. and TAC 2 Pte. Ltd., excluding shares held by certain shareholders. At the Scheme Meeting held on April 15, 2025, shareholders approved the resolution with a majority representing not less than 75% in value of the scheme shares voted.

Japfa Ltd. AGM Resolutions Passed with Strong Shareholder Support
Apr 15, 2025

Japfa Ltd. announced that all resolutions proposed at its Annual General Meeting were successfully passed, including the adoption of financial statements, declaration of a final dividend, and the re-election of several directors. This outcome reflects strong shareholder support and positions the company for continued stability and growth in the agri-food sector.

Japfa Comfeed Indonesia Holds Successful Annual and Extraordinary Shareholders’ Meetings
Apr 11, 2025

PT Japfa Comfeed Indonesia Tbk held its Annual and Extraordinary General Shareholders’ Meetings on April 10, 2025, where key decisions were made regarding the approval of the 2024 Annual Report, profit utilization, appointment of a public accountant for 2025, and the appointment and remuneration of the Board of Commissioners and Directors. The meetings, attended by a significant majority of shareholders, proceeded without any questions or opinions from the shareholders, indicating a smooth consensus on the resolutions.

Japfa Comfeed Indonesia Releases March 2025 Securities Holder Report
Apr 10, 2025

Japfa Comfeed Indonesia Tbk, a subsidiary of Japfa Ltd., has released its monthly securities holder registration report as of March 31, 2025. The report indicates that Japfa Ltd. maintains a significant controlling interest with 55.43% of the shares, while other directors hold smaller percentages. This stable ownership structure suggests continuity in Japfa’s strategic direction and potential stability for stakeholders.

Japfa Comfeed Indonesia Tbk Shares Insights from Shareholders Meeting
Apr 10, 2025

Japfa Comfeed Indonesia Tbk has released a summary of its General Meeting of Shareholders, which took place on April 10, 2025. While the announcement does not specify the direct impact on operations, legal standing, financial condition, or business continuity, it signifies a routine corporate governance practice that is crucial for maintaining transparency and shareholder engagement.

Japfa Comfeed Indonesia Announces Management Reshuffle
Apr 10, 2025

Japfa Comfeed Indonesia Tbk has announced changes in its management team, effective April 10, 2025. The company has appointed Gabriella Santosa as a new director and Antonius Harwanto Suryo Sembodo as a new commissioner, while other key positions remain unchanged. These changes are likely to impact the company’s strategic direction and operational efficiency, potentially influencing its market positioning and stakeholder relations.

Japfa Comfeed Indonesia Releases 2024 Annual Report and Announces Shareholders Meeting
Mar 20, 2025

Japfa Comfeed Indonesia Tbk has released its 2024 Annual Report, covering the fiscal year from January 1, 2024, to December 31, 2024. The company has announced its Annual General Meeting of Shareholders scheduled for March 19, 2025, with details available on their official website. This announcement is crucial for stakeholders as it provides insights into the company’s performance and strategic direction.

Japfa Ltd. Announces Key Shareholders’ Meetings and Share Buyback Plan
Mar 19, 2025

Japfa Ltd. has announced its upcoming Annual and Extraordinary General Shareholders’ Meetings scheduled for April 10, 2025, in Jakarta. The meetings will cover key agenda items such as the approval of the 2024 financial statements, profit utilization, appointment of auditors, and the election of board members. Additionally, the company seeks shareholder approval for a share buyback plan, in line with recent financial regulations, which could impact its stock market strategy and shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 08, 2025