Betagro Public Company Limited (SET: BTG) announced its 2025 guidance at an analyst meeting, anticipating robust financial performance in 2025, driven by increasing domestic sales, rising chicken export volumes, and the strategic acquisition of Eggriculture.
Kiatnakin Phatra Securities has revised the company’s 2025 and 2026 earnings estimates upwards by 3% and 2%, respectively, reflecting strong 2024 earnings and positive guidance for 2025.
BTG projects sales growth of 3-7% in 2025, fueled by increased domestic sales volume and strong demand for chicken exports from Europe.
The company forecasts a gross profit margin (GPM) of 13.5-15%, indicating a significant recovery in domestic live pork prices and pork parts. Live hog prices are expected to be around THB 80 per kilogram, compared to THB 73 per kilogram in 4Q24, with retail pork meat prices at approximately THB 170 per kilogram versus THB 150 per kilogram in 4Q24.
While soybean meal costs are expected to continue declining, corn prices have seen a slight increase post-harvest. However, BTG may maintain cost stability through effective inventory management.
BTG’s acquisition of Eggriculture is set to contribute THB 150-180 million to full-year sales, with consolidation beginning in 1Q25.
The securities company expects a strong first quarter in 2025, with potential upside on GPM exceeding 15%, driven by higher hog prices, a recovery in pork parts, and better retail pricing from large modern trade channels.
Kiatnakin Phatra maintains a “Buy” rating for BTG, with a target price of 26.50 THB, citing the upward trend in domestic pork prices and lower raw material costs as factors boosting the company’s GPM and earnings this year. A slight adjustment has been made to the GPM, increasing it from 13.8% to 14% to account for potential upside in domestic pork prices. This is partially offset by a higher tax rate based on actual results.
