The share price of GFPT Public Company Limited (SET: GFPT) rose as much as 5% during the morning session of the Thai stock market in response to a positive sentiment after Malaysia temporarily halted exports of chickens for a month.
According to the statement by Malaysian Prime Minister Ismail Sabri Yaakob, Malaysia will temporarily halt exports of 3.6 million chickens from June 1 for a month and scrap the approved permit requirement for importing wheat until production and prices stabilize.
CGS-CIMB Securities stated that the firm is neutral on this news as Malaysia is not among the world’s major chicken exporters. CGS-CIMB Securities said that it does not expect the ban to have a significant impact on global chicken supply. Meanwhile, Charoen Pokphand Foods Public Company Limited (SET: CPF) runs chicken operation in Malaysia with no exports, which contribute less than 2% of sale. On the other hand, chicken exports to Malaysia contribute around 5% of GFPT’s sales.
The share price of GPFT rose as much as 5.03% or THB0.80 to trade at THB16.40 per share. Meanwhile, CPF rose slightly by 1% to THB25.50 per share in the morning session.
CGS-CIMB Securities gave buy recommendations on GFPT and CPF, with a target price at THB18.90 and THB29.00, respectively.
