External broker reports(aggregated public sources), BRI Danareksa Research

BRI Danareksa Research

As a one-stop financial solution with the vision to be the most valuable securities house, BRI Danareksa Sekuritas (BRIDS) has maintained an excellent track record and extensive experience in the capital market as an underwriter, broker, and financial advisor for individual, institutional, foreign and domestic, private and government clients. Established in 1992, PT Danareksa Sekuritas is a securities company that performs activities as a securities broker, underwriter, or arranger and financial advisor. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

External broker reports(aggregated public sources)

As a one-stop financial solution with the vision to be the most valuable securities house, BRI Danareksa Sekuritas (BRIDS) has maintained an excellent track record and extensive experience in the capital market as an underwriter, broker, and financial advisor for individual, institutional, foreign and domestic, private and government clients. Established in 1992, PT Danareksa Sekuritas is a securities company that performs activities as a securities broker, underwriter, or arranger and financial advisor.

Thematic (Sector/Industry)

Indonesia Consumer staples / Thematic (Sector/Industry)

<ul><li>While recent weak broiler prices and higher local corn prices may drive lower 3Q23 earnings (qoq), we maintain our Overweight view on the back of cheap valuation (at 9.2x EV/EBITDA, -1SD to 5-year average) in view of the potential earnings recovery in 4Q23 and FY24F (22% EPS growth).</li><li>Weak broiler prices in the second week of September, DOC remained robust. Despite the ongoing supply adjustment mechanism through culling, livebird (LB) prices in West Java dropped to IDR18k/kg in mid-September from IDR21k in the early month. In the past two years, LB prices have been weak during September.</li><li>Meanwhile, DOC prices remained high at around IDR 7,500/chick signaling a tighter supply due to the culling programs. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

While recent weak broiler prices and higher local corn prices may drive lower 3Q23 earnings (qoq), we maintain our Overweight view on the back of cheap valuation (at 9.2x EV/EBITDA, -1SD to 5-year average) in view of the potential earnings recovery in 4Q23 and FY24F (22% EPS growth).Weak broiler prices in the second week of September, DOC remained robust. Despite the ongoing supply adjustment mechanism through culling, livebird (LB) prices in West Java dropped to IDR18k/kg in mid-September from IDR21k in the early month. In the past two years, LB prices have been weak during September.Meanwhile, DOC prices remained high at around IDR 7,500/chick signaling a tighter supply due to the culling programs. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Poultry: Poised for 4Q23 recovery despite ST headwinds (OVERWEIGHT)

Indonesia Consumer Staples

Poultry: Poised for 4Q23 recovery despite ST headwinds (OVERWEIGHT)