Indonesian Feed Industry in EVA Views (Very Brief)

Although JPFA has the highest gross margin...

Its true profitability is less than CPIN as shown clearly by EVA margin*.

(Note that MAIN is a value destroyer as shown by persistent negative EVA margin)

*While gross margin captures only a part of operating profitability, it does not take into account asset use efficiency. EVA margin captures both full operating profitability and asset efficiency into a single score.

That is partly because CPIN has the highest NOPAT margin (except in 2016).

which is why investors are giving CPIN the highest value in the feed industry...

..maybe a little too much....

Also note that investors are reluctant to give premium to MAIN as shown by near zero MVA. Zero MVA means investors are viewing MAIN as a value neutral company. It could be worse, because MAIN has been a persistent value destroyer (see EVA margin above or EVA chart below).

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Climate Focus

With coronavirus epidemic happenings, let's read some about it how climate change could play part. This is an excerpt from the article from Environmental Research Letter.

"Rapid weather variability in autumn will continue to strengthen in some regions of northern mid-latitudes in a warming climate, implying that the risk of influenza epidemic may increase 20% to 50% in some highly populated regions in later 21st century."

Read the full article here.