SGX:UD2

Stock Analysis Report

Executive Summary

Japfa Ltd., an industrial agri-food company, produces and sells dairy products, protein staples, and packaged food products in Singapore, Indonesia, Vietnam, China, India, Myanmar, and internationally.

Snowflake

Fundamentals

Undervalued with proven track record.


Similar Companies

Share Price & News

How has Japfa's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.3%

UD2

-0.02%

SG Food

0.9%

SG Market


1 Year Return

-23.1%

UD2

8.4%

SG Food

1.4%

SG Market

Return vs Industry: UD2 underperformed the SG Food industry which returned 8.4% over the past year.

Return vs Market: UD2 underperformed the SG Market which returned 1.4% over the past year.


Shareholder returns

UD2IndustryMarket
7 Day3.3%-0.02%0.9%
30 Day-7.0%-6.7%-2.3%
90 Day-12.3%-7.3%-6.7%
1 Year-20.8%-23.1%11.3%8.4%5.4%1.4%
3 Year-38.2%-41.5%-1.6%-9.0%15.8%3.4%
5 Year-34.0%-38.0%-9.7%-19.8%11.3%-7.0%

Price Volatility Vs. Market

How volatile is Japfa's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Japfa undervalued compared to its fair value and its price relative to the market?

32.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: UD2 (SGD0.47) is trading below our estimate of fair value (SGD0.69)

Significantly Undervalued: UD2 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: UD2 is good value based on its PE Ratio (9.4x) compared to the Food industry average (15.4x).

PE vs Market: UD2 is good value based on its PE Ratio (9.4x) compared to the SG market (13.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: UD2 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: UD2 is good value based on its PB Ratio (0.8x) compared to the SG Food industry average (0.8x).


Next Steps

Future Growth

How is Japfa forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

21.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UD2's forecast earnings growth (21.6% per year) is above the savings rate (2.3%).

Earnings vs Market: UD2's earnings (21.6% per year) are forecast to grow faster than the SG market (5.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: UD2's revenue (3.6% per year) is forecast to grow slower than the SG market (5.4% per year).

High Growth Revenue: UD2's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: UD2's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has Japfa performed over the past 5 years?

9.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: UD2's earnings have grown by 9.8% per year over the past 5 years.

Accelerating Growth: UD2's earnings growth over the past year (37%) exceeds its 5-year average (9.8% per year).

Earnings vs Industry: UD2 earnings growth over the past year (37%) exceeded the Food industry -16.5%.


Return on Equity

High ROE: UD2's Return on Equity (11.7%) is considered low.


Return on Assets

ROA vs Industry: UD2 has a higher Return on Assets than the Food industry average last year.


Return on Capital Employed

ROCE Improving: UD2's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Japfa's financial position?


Financial Position Analysis

Short Term Liabilities: UD2's short term assets ($1.4B) exceeds its short term liabilities ($1.0B)

Long Term Liabilities: UD2's short term assets (1.4B) exceeds its long term liabilities (986.9M)


Debt to Equity History and Analysis

Debt Level: UD2's debt to equity ratio (124.7%) is considered high

Reducing Debt: UD2's debt to equity ratio has reduced from 130% to 124.7% over the past 5 years.

Debt Coverage: UD2's debt is not well covered by operating cash flow (12.2%).

Interest Coverage: UD2's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet

Inventory Level: UD2 has a high level of physical assets or inventory.

Debt Coverage by Assets: UD2's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Japfa's current dividend yield, its reliability and sustainability?

2.12%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%2.5%markettop25%5.6%industryaverage2.8%forecastin3Years2.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: UD2's dividend (2.12%) isn’t notable compared to the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: UD2's dividend (2.12%) is low compared to the top 25% of dividend payers in the SG market (5.59%).

Stable Dividend: UD2 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: UD2's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.3%), UD2's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: UD2's dividends in 3 years are forecast to be well covered by earnings (16.4% payout ratio).


Next Steps

Management

What is the CEO of Japfa's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average board tenure


CEO

Yong Nang Tan (58yo)

5.8yrs

Tenure

0

Mr. Yong Nang Tan has been the Chief Executive Officer of Japfa Ltd. and has been its Executive Director since June 2009. Mr. Tan has held posts as the Chief Executive Officer, Managing Director and Projec ...


Board Age and Tenure

2.9yrs

Average Tenure

63yo

Average Age

Experienced Board: UD2's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Handojo Santosa (55yo)

    Chairman of the Board

    • Tenure: 0.5yrs
  • Bambang Hendarto (74yo)

    Chief Operating Officer of Operation 1 — Poultry Indonesia

    • Tenure: 0yrs
  • Yong Nang Tan (58yo)

    CEO & Executive Director

    • Tenure: 5.8yrs
  • Kevin Monteiro (63yo)

    CFO & Executive Director

    • Tenure: 5.5yrs
  • Christina Chua (53yo)

    Head of Legal & Compliance and Joint Company Secretary

    • Tenure: 0yrs
  • Edgar Collins (52yo)

    Head of Dairy

    • Tenure: 0yrs
  • Peter Chin (64yo)

    Head of Consumer Food

    • Tenure: 0yrs
  • Jasper Tan (44yo)

    Head of Human Resources

    • Tenure: 0yrs
  • Arif Widjaja

    Co-Country Head of Japfa Comfeed Vietnam Limited Company

    • Tenure: 0yrs
  • Renaldo Santosa (28yo)

    Head of Business Development & Strategy

    • Tenure: 2.6yrs

Board Members

  • Manu Bhaskaran (60yo)

    Independent Director

    • Tenure: 0.5yrs
  • Handojo Santosa (55yo)

    Chairman of the Board

    • Tenure: 0.5yrs
  • Siaou-Sze Lien (69yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$127.50k
  • Quek Peng Ng (65yo)

    Lead Independent Director

    • Tenure: 0.5yrs
    • Compensation: US$127.50k
  • Tan Chew (65yo)

    Independent Director

    • Tenure: 0.5yrs
  • Yong Nang Tan (58yo)

    CEO & Executive Director

    • Tenure: 5.8yrs
  • Hendrick Kolonas (63yo)

    Non-Executive Non-Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$100.00k
  • Kevin Monteiro (63yo)

    CFO & Executive Director

    • Tenure: 5.5yrs

Company Information

Japfa Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Japfa Ltd.
  • Ticker: UD2
  • Exchange: SGX
  • Founded: 2008
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: S$838.502m
  • Shares outstanding: 1.86b
  • Website: https://www.japfa.com

Number of Employees


Location

  • Japfa Ltd.
  • Tower B
  • No. 18-08, Ngee Ann City
  • Singapore
  • 238874
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UD2SGX (Singapore Exchange)YesOrdinay SharesSGSGDAug 2014
1O4DB (Deutsche Boerse AG)YesOrdinay SharesDEEURAug 2014

Biography

Japfa Ltd., an industrial agri-food company, produces and sells dairy products, protein staples, and packaged food products in Singapore, Indonesia, Vietnam, China, India, Myanmar, and internationally. It  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:51
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.