In the early Monday morning trading, shares of food and beverage companies saw their prices jump, with analysts suggesting that the THAIFEX Anuga Asia 2022 show may have helped improve investor sentiment.
The share price of R&B Food Supply Public Company Limited (SET: RBF) rose THB0.50/share or 3.27% to THB15.80/share, with a trading value of THB78 million.
The share price of Sappe Public Company Limited (SET: SAPPE) rose THB0.75/share or 2.17% to THB35.25/share, with a trading value of THB49 million.
The share price of Thai Union Group Public Company Limited (SET: TU) rose THB0.30/share or 1.76% to THB17.30/share, with a trading value of TH311 million.
The share price of Srinanaporn Marketing Public Company Limited (SET: SNNP) rose THB0.20/share or 1.25% to THB16.20/share, with a trading value of THB40 million.
KTBST Securities has an optimistic outlook on the Food & Beverage industry. The recent event, THAIFEX – Anuga
Asia 2022, which had held between May 24 and 28 at Muangthong Thani, received an overwhelming response from both domestic and overseas customers, which is forecasted to generate sales of THB39.0 billion, up +405% from THB7.7 billion in 2020. The top five orders were ready meals, catering equipment, seafood, confectionery and snacks, and beverage. With the inquiries, the covered food & snack players have received well feedback from overseas customers with orders likely to come on stream from late 3Q22.
KTBST maintains an aggregate net profit forecast at THB17.0 billion, which indicates a slight -4% reduction YoY, and THB19.0 billion (+13% YoY) in 2022-23E.
KTBST recommends SNNP, a Top Pick stock in the Food & Beverage sector, with a THB20.00 target price. Based on 1) its valuation remains attractive, trading at 30.6x compared with core profit growth of +63%/+30% YoY in 2022-23, 2) the company has cost advantages given its own facilities in the country and overseas, and 3) the upcoming hemp-cannabis and innovation products, as well as an expansion of its market presence into the Indonesian market will provide an upside to KTBST earnings forecast.
