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Brokers' Take

Published Fri, Oct 28, 2016 · 09:50 PM

Japfa > Buy

DBS Group Research, Oct 28

Target price: S$1.18

Oct 28 close: S$0.835

JAPFA Ltd's FY15-18 forecast earnings before interest, tax, depreciation and amortisation compounded annual growth rate of 19 per cent justifies our implied 6.3 times forward enterprise value to Ebitda multiple.

The stock trades at a significant discount to its Indonesian-listed subsidiary Japfa Comfeed Indonesia despite delivering decent earnings growth from China, Vietnam and Myanmar, where per capita demand for dairy, animal protein and branded consumer foods is st…