Charoen Pokphand Indonesia

PT Charoen Pokphand Indonesia is Indonesia's largest producer of poultry feed, day old chicks and processed chickens. Its core business is the agro-business, specifically the manufacturing of poultry feed. The company has a dominating market share of about 35 percent in both the country's day old chicks (DOC) business and the poultry feed industry.

Profile

Industry Sector Basic Industry and Chemicals
Industry Sub Sector Animal Feed
Established 7 January 1972
Listed 18 March 1991
Listed Company Code CPIN
Listed Shares 16,398,000,000
Dividend Yes
Major Shareholders (>5%) Central Agromina (55.53%)
Key Subsidiaries Vista Grain
Charoen Pokphand Jaya Farm
Centralavian Pertiwi
Cipendawa Agriindustri
Istana Satwa Borneo


Stock Quote Charoen Pokphand Indonesia - CPIN:

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Business Summary

Charoen Pokphand Indonesia has several business segments:

Poultry Feed
Day old Chicks (DOC)
Processed Chickens
Others

Poultry feed, which is produced in various centers on Java, Sumatra and Sulawesi, is produced in the following forms: concentrate, mash, pellet or crumble. The company has various well known brands in this business segment, such as Hi-Pro, Bintang, Bonavite and Royal Feed.

The production of poultry feed is the largest business operation of the company as it accounts for over 70 percent of total revenue. The second largest revenue stream for the company, accounting for about 15 percent of total revenue, is day old chicks (DOC). Almost 9 percent of total revenue is accounted for by the processed chickens segment.

Corn and soybean are the two most important raw materials that are bought by Charoen Pokphand. Therefore, global prices of these two commodities influence profit numbers of the company. As such, weak harvest in the USA have an impact on the company's financial numbers.

From 2011 onwards, the company has expanded its production facilities, including feed manufacturing plants, hatcheries as well as processed chicken facilities, outside its traditional strongholds on Java.


Charoen Pokphand Indonesia's Financial Highlights:

       2010      2011      2012      2013
Net Sales   15,077.8   17,958.0   21,310.9   25,663.0
Gross Profit    3,754.1    3,924.2    4,491.5    5,149.8
Income from Operations
   2,837.4    3,009.2    3,458.7    3,578.3
Net Income
   2,210.3    2,355.5    2,684.1    2,530.9
Total Assets    6,518.3    8,848.2   12,348.6   15,722.2
Total Liabilities    2,036.2    2,658.7    4,172.2    5,771.3
Earnings per Share¹       135       144       164       154
Cash Dividend per Share¹       39,8        42        46       

in billion IDR rupiah unless otherwise stated
¹ in IDR rupiah
Source: Charoen Pokphand Indonesia, Annual Report 2013


Prospects of the poultry feed industry in Indonesia are good as the per capita poultry meat consumption in Indonesia is one of the lowest in the region, while the country - having a huge population of more than 240 million people - is characterized by robust economic growth which translates into increasing per capita GDP and purchasing power. This is expected to result in more poultry meat consumption in the years ahead. 


Future Projection Financial Performance Charoen Pokphand:

        2012       2013      2014F      2015F
Net Sales    21,310.9    25,663.0    28,301.0    31,920.0
EBITDA     3,401.0     3,904.0     3,644.0     5,326.0
Net Income
    2,684.1     2,530.9     3,005.0     4,320.0
P/B (x)
         8         6.6         5.5         4.4
P/E Ratio (x)        23.7        24.1        21.9        15.1

in billion IDR rupiah unless otherwise stated
Source: RHB OSK Securities

Contact Details

Jalan Ancol VIII No. 1
Jakarta 14430
Phone: +62 21 691 9999
Fax: 62 21 690 7324
Email: hadijanto@cp.co.id
www.cp.co.id

Location