Share prices shot up, what are the recommendations for shares of poultry issuers?

ILLUSTRATION. Chicken slaughtering process at PT. Ciomas Adisatwa (JAPFA Group), Sadang, West Java, Friday (26/7). KONTAN / Baihaki / 26/7/2013

Reporter: Ika Puspitasari | Editor: Tendi Mahadi

KONTAN.CO.ID – JAKARTA. A number of shares of animal feed issuers have strengthened in the last month. Shares of PT Japfa Comfeed Indonesia Tbk (JPFA) shot 24.92%, PT Charoen Pokphand Indonesia Tbk (CPIN) grew 12.70%, and PT Sreeya Sewu Indonesia Tbk (SIPD) increased 23.97% in a month.

Director of the Pilarmas Investindo Sekuritas Research and Investment Association Maximilianus Nico Demus said the performance of the poultry is projected to bounce back in line with the improving economy.

“Although it will not be immediately positive, we are slowly convinced the sector poultry will try to get back up this year. Moreover, government policies are also quite helpful in increasing the price stability of broiler chickens, “said Nico, Sunday (28/3).

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Nico added, this is considered to be able to maintain consistency in income for poultry issuers.

The same thing was also conveyed by Philip Sekuritas Indonesia analyst Michael Filbery. Michael explained that there are a number of positive sentiments for the animal feed sector.

First, the Government’s efforts through the Ministry of Agriculture to commit to maintaining the stability of market prices for products livebird, where the Ministry of Agriculture targets to reduce the amount of chicken production through reducing the production of hatching eggs and reducing it day old chicken (DOC) of 288 million.

The final stock DOC cut is targeted to reach 85% of this year’s potential surplus. The target for pruning starts from February to April 2021. “So that this can maintain the stability of chicken prices until the second quarter,” added Michael.

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Second, the potential for a stronger price livebird approaching the month of Ramadan it can also boost sales of issuers poultry in this 1st semester. Since the beginning of this month, prices livebird It has also been observed to be stable at the price level of Rp. 19,000-Rp. 21,000 per kg.

“Meanwhile, the sentiment is negative for listed companies poultry “There is a jump in the price of raw materials for animal feed, namely soybeans,” he said.