STOCK RECOMMENDATION -JAKARTA. PT Charoen Pokphand Indonesia Tbk (CPIN)'s net profit in 2023 is under pressure due to the soaring price of corn and the falling price of broiler chickens and day-old chickens (DOC).
CPIN recorded a net profit for the year attributable to the parent entity of IDR 2.31 trillion. This is down 20.82% year on year (YoY) from IDR 2.92 trillion in 2022.
However, this poultry issuer recorded a net revenue growth of 8.35% YoY to IDR 61.61 trillion. In 2022, CPIN earned a net revenue of IDR 56.86 trillion.
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If dissected quarterly, CPIN recorded a net loss of IDR 357 billion in the October-December 2023 period. This is a reversal from a net profit of around IDR 1.3 trillion in the third quarter of 2023.
Investment Analyst at Stockbit Securities, Reynaldo Mulya, noted that the decline in CPIN's net profit in the fourth quarter of 2024 was triggered by high commodity prices, especially corn prices.
"The increase in commodity prices, especially corn prices, which are the majority of raw materials, and the low prices of broilers and day-old chickens," he said in his research, Tuesday (27/3).
Even so, Reynaldo still has a positive view of poultry issuers like CPIN in 2024. This is due to the normalization of corn prices and the recovery of broiler and DOC prices.
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Analyst at Indo Premier Securities, Andrianto Saputra, projects that CPIN's revenue will recover in the first quarter of 2024, supported by improving broiler prices and normalization of corn prices.
Andri said Indo Premier Securities is still reviewing its projections and seeking more details from CPIN management, considering a buy recommendation with a target price of IDR 5,400.
As of the end of trading on Wednesday (27/3), CPIN parked at IDR 5,175 per share. This weakened by 96% or fell 50 points from the previous close. So far this year, CPIN is still up 2.99%.
