25 May 2026

Japfa Comfeed Indonesia to see revenue boost in the next 5 years

The company is currently in a very solid earnings turnaround phase from 2025 through Q1 2026.

aviNews Asia

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Japfa Comfeed Indonesia, an agrifood company based in Jakarta, is expected to see a revenue boost in the next five years, according to a report by Simply Wall St, a platform offering tools for long-term investors to manage portfolios, research global stocks, and discover opportunities.

The report is divided into three parts: fundamental analysis, risk assessment, and macro outlook & growth drivers – to give a comprehensive insight about the potential of the company’s financial performance.

Fundamental analysis (Analyst view)

Super-earnings turnaround: Japfa Comfeed Indonesia is currently in a very solid earnings turnaround phase from 2025 through Q1 2026.
Q1 2026 earnings surge: Revenue grew 23.6% yoy to around USD 1 billion, while net profit skyrocketed 166.9% yoy to around USD 103 million (representing nearly 45% of the full-year consensus target).
Margin expansion: Recovery driven by higher average selling price (ASP) in DOC (day-old chicks) and broiler segments, combined with lower global feed raw material prices (soybean meal and corn) compared to their 2023–2024 peaks.
Deeply undervalued: At the latest closing price of USD 0.15, Japfa Comfeed Indonesia trades at a trailing P/E ratio of ~5.8x–6.7x. This is a steep discount compared to its 5-year historical average (~10x P/E) and its main competitor, Charoen Pokphand Indonesia, which typically trades above 15x P/E.
Financial ratios & dividends: ROE has climbed to a prime level of ~19%–21%. The company also offers attractive long-term dividend yield potential in the range of 5.4%–7%, providing a safety cushion for long-term investors.

Risk assessment

Raw material & rupiah volatility: SBM (soybean meal) is still import-based. A sharp depreciation of the rupiah against the USD by late 2026 could immediately squeeze feed margins.
Regulatory intervention on SBM imports: Plans to centralize SBM import trade through state-owned enterprises (such as Berdikari) could raise logistics and operational costs starting late 2026 into 2027.
Oversupply cycle: Large industry profits often trigger massive capacity expansion. If the government relaxes culling instructions (hatching egg/DOC destruction), oversupply risk could pressure broiler prices again in H2 2027.

Macro outlook & growth drivers (2026–2027)

MBG program (free nutritious meals): Rolling out nationwide in 2026, this welfare program positions eggs and chicken meat as primary protein sources. Japfa Comfeed Indonesia, with strong upstream-to-downstream integration, stands to benefit significantly in sales volume.
Reduced GP import quota: A -16% cut in grandparent stock (GP) imports previously helped balance live bird supply-demand in the domestic market, stabilizing prices through mid-2026.
Per capita consumption growth: Indonesia’s chicken consumption per capita remains low compared to other ASEAN countries (such as Malaysia). Long-term secular growth potential remains wide open.