China NBS Manufacturing PMI Rose to 50.2 in Feb-25

China NBS Manufacturing PMI Rose to 50.2 in Feb-25

China's official NBS Manufacturing PMI increased to 50.2 in Feb-25 (vs Jan-25; 49.1), marking the first expansion in three months and surpassing the market consensus of 49.9. The rebound followed the Lunar New Year break and was supported by Beijing's stimulus measures amid US tariffs, weak domestic demand, and deflation risks. Output (52.5), new orders (51.1), and purchasing activity (52.1) expanded, while declines in foreign orders (48.6) and employment (48.6) slowed. (Trading Economics)

INDUSTRY

China Rejected Indonesia's HBA as Coal Export Benchmark
China opposed Indonesia's plan to set the Coal Benchmark Price (HBA) as the standard for coal exports. The China Coal Transport and Distribution Association reported that some Chinese firms might cancel or renegotiate long-term contracts due to HBA pricing. Chinese importers resisted the move, citing high domestic production and weak winter demand, leading to excess stockpiles. If HBA significantly raises prices, it could hurt trade margins and reduce Chinese purchases. (Kontan)

 

COMPANY

BCAS: JPFA IJ - FY24 Earnings Above Ours and Cons

- In 4Q24, JPFA booked net profit of IDR923bn (+49.6% QoQ), bringing FY24 earnings to IDR3tn (+224.7% YoY) above ours & cons at 105%/108%. Feed remains pillar of profitability, with stable margins YoY. DOC and Broiler reported operating profits mainly due to stable ASPs of DOC and broiler, and lower feed costs.
- 4Q24 revenue recorded at IDR14.1tn (+6.5% QoQ; +8.3% YoY), bringing FY24 revenue at IDR 55.8% (+9% YoY), driven by higher sales volumes & prices for DOC & broiler. Consumer products also saw strong growth YoY at 12%.
 

The balanced demand supply of DOCs via import quotas & culling helped stabilize poultry prices. Going forward, the Co. will continue to strengthen downstream business through development of poultry processing and consumer products, also encourage retail sales growth, offline and online. We think with sustained poultry prices, margins can be maintained and profitability will be sustained for this year. Our last call is BUY for JPFA with TP of IDR2,500/sh