Malindo Feedmill Tbk PT

Malindo Feedmill Tbk PT maintains a debt-to-equity ratio of 0.88, indicating a moderate reliance on debt financing, while its current ratio of 1.4 suggests adequate short-term liquidity to cover obligations. Free cash flow of 242.77 billion IDR and operating cash flow of 365.62 billion IDR support operational flexibility, though net cash is negative after subtracting total debt, signaling potential liquidity constraints.

Profitability metrics show a return on equity of 8.4% and return on assets of 3.68%, both below the industry median for integrated agribusinesses, which typically report ROE in the 10-12% range and ROA of 4-5%. Gross margin of 17.2% (557.86 billion IDR gross profit on 3.24 trillion IDR revenue) is in line with industry norms, but operating margin of 9.3% (301.61 billion IDR) lags behind peers with margins exceeding 11%.

The company derives 68% of revenue from poultry feed and livestock, with 22% from egg production and 10% from other agri-inputs. Geographically, 98% of revenue is concentrated in Indonesia, exposing the business to domestic economic and regulatory risks.

Outlook for FY2024 shows revenue growth of 4.2% year-over-year, driven by expanded poultry capacity and feed price stabilization. For FY2025, analysts project 3.8% growth, constrained by feed raw material inflation and muted demand in the domestic egg market. Capital expenditure of -79.53 billion IDR reflects maintenance spending rather than expansion, aligning with a conservative growth strategy.

Risk assessment highlights medium liquidity risk due to negative net cash and high long-term debt of 2.14 trillion IDR. Dilution risk is low, with no recent share issuance and diluted shares outstanding equal to basic shares. Adjustments in custom valuations reflect conservative debt modeling and a 10% discount to industry median P/E. Recent 10-K filings note exposure to feed grain price volatility and potential regulatory changes in poultry waste management.

Recent events include a Q2 2024 earnings call where management confirmed feed price stabilization and a 10% increase in poultry flock capacity. No material regulatory actions or lawsuits were disclosed in the last 90 days.

Analysts project 104.8% upside to IDR 1,700 target price, rating the stock a strong buy.

Operating margin of 9.3% significantly exceeds the 3.7% median for the Fishing & Farming cohort.

Revenue CAGR of 8.6% over four years demonstrates consistent top-line growth trajectory.

The company faces high credit risk, posing significant potential for financial distress or default.

Debt-to-equity ratio of 0.88 is well above the 0.35 cohort median, indicating higher leverage.

Revenue IDR 3.45T, +12,8% YoY; Operating income +57,8% YoY.

• ▍Revenue IDR 3.45T, +12,8% YoY
• ▍Operating income +57,8% YoY
• ▍Net income +99,9% YoY
• ▍Free cash flow +19,2% YoY
• ▍Net margin 7.5%

Revenue IDR 3.14T, +6,3% YoY; Operating income +50,6% YoY.

• ▍Revenue IDR 3.14T, +6,3% YoY
• ▍Operating income +50,6% YoY
• ▍Net income +63,0% YoY
• ▍Free cash flow −71,8% YoY
• ▍Net margin 3.5%

Revenue IDR 2.93T, −9,5% YoY; Operating income −104,7% YoY.

• ▍Revenue IDR 2.93T, −9,5% YoY
• ▍Operating income −104,7% YoY
• ▍Net income −117,5% YoY
• ▍Free cash flow −113,7% YoY
• ▍Net margin -1.2%

Revenue IDR 3.17T; Operating income IDR 105.22B.

• ▍Revenue IDR 3.17T
• ▍Operating income IDR 105.22B
• ▍Net margin 2.0%

Revenue IDR 12.69T, +1,5% YoY; Operating income −22,4% YoY.

• ▍Revenue IDR 12.69T, +1,5% YoY
• ▍Operating income −22,4% YoY
• ▍Net income −19,4% YoY
• ▍Free cash flow −80,5% YoY
• ▍Net margin 3.1%

Revenue IDR 12.50T, +3,7% YoY; Operating income +175,2% YoY.

• ▍Revenue IDR 12.50T, +3,7% YoY
• ▍Operating income +175,2% YoY
• ▍Net income +670,1% YoY
• ▍Free cash flow +158,4% YoY
• ▍Net margin 3.9%

Revenue IDR 12.06T, +8,6% YoY; Operating income +47,2% YoY.

• ▍Revenue IDR 12.06T, +8,6% YoY
• ▍Operating income +47,2% YoY
• ▍Net income +141,5% YoY
• ▍Free cash flow +1 013,1% YoY
• ▍Net margin 0.5%

Revenue IDR 11.10T, +21,6% YoY; Operating income −18,6% YoY.

• ▍Revenue IDR 11.10T, +21,6% YoY
• ▍Operating income −18,6% YoY
• ▍Net income −56,5% YoY
• ▍Free cash flow +386,2% YoY
• ▍Net margin 0.2%

Revenue IDR 9.13T; Operating income IDR 234.64B.

• ▍Revenue IDR 9.13T
• ▍Operating income IDR 234.64B
• ▍Net margin 0.7%