Japfa

Japfa: CIMB initiates at Add with TP $1.25, implying 15.2x CY16 P/E. Says Japfa is a play on the rising wages of Asia's lower middle income population and the inevitable shift in food sources to industrialized farms. With beef and Indochina as future growth pillars, Japfa is set to become a truly diversified agri-food business that spans the entire value chain, producing different animal proteins and entrenching itself in Asia’s most populous markets.