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STOCK MARKET - JAKARTA. The government will provide social assistance (bansos) in the form of chicken meat as an addition for beneficiary families (KPM) who have stunted toddlers.
According to Kontan's previous records, the 10 kg rice aid is distributed to 18.8 million KPM with a total overall budget for additional chicken meat and eggs reaching IDR 17.5 trillion until June 2024.
The government plans to add 2 additional bansos programs to mitigate food risks in 2024, in addition to the bansos that are routinely distributed every year.
First, the 10 kg rice aid (plus eggs and chicken meat for families with stunted toddlers) until June 2024 amounts to IDR 17.5 trillion. Second, direct cash assistance (BLT) with a budget of IDR 11.3 trillion which is distributed until March 2024.
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Abdul Azis Setyo Wibowo, an analyst at Kiwoom Securities Indonesia, believes that the program could have a positive impact on poultry issuers such as PT Charoen Pokphand Indonesia Tbk (CPIN) and PT Japfa Comfeed Indonesia Tbk (JPFA).
Considering that the poultry sector is currently experiencing an oversupply, the additional bansos program could impact the reduction of supply.
"We estimate this impact will be seen in the second quarter of 2024," Azis told Kontan.co.id, Friday (23/2).
The sentiment of Ramadan and Eid is also considered to potentially boost the performance of poultry issuers. At that moment, there is usually an increase in community consumption.
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Muhammad Nafan Aji Gusta Utama, Senior Investment Information at Mirae Asset Securities, added that the bansos would boost demand or domestic demand for the poultry sector as a whole.
"Ramadan can also be a positive sentiment on the movement of poultry issuer stock prices," Nafan told Kontan.co.id, Sunday (25/2).
On Friday's (23/2) trading, JPFA shares closed up 0.45% to a price level of IDR 1,105 per share and CPIN shares closed down 1.25% to a price level of 4,740 per share.
Nafan recommends accumulate on JPFA shares with a target price of IDR 1,220 per share and accumulate on CPIN shares with a target price of IDR 5,100 per share.
Meanwhile, Azis recommends trading buy on CPIN shares with a target price of IDR 5,200 per share.
