(newspaper only)

CPIN booked 2Q22 net profit of IDR1.2tn (+3% QoQ, -11% YoY) brings 1H22 at IDR2.4tn (58% of FY22 consensus).

Overall margins improved QoQ presumably from improvement feed margins from lower corn price. 

We expect stronger performance in 2H22F due to : 1) Improvement in day-old chick (DOC) segment profitability as Jul22 DOC selling price has rebound back to IDR 5,225 (+21% YoY) from bottom at IDR3,600/unit ; 2) Potential profit expansion in Broiler segment from strong selling price (Jul22 avg. selling price trades at IDR 21k ); and 3) Higher feed margin as corn price turns favorable