The share price of Thai chicken export companies continue to gain pace in the afternoon session as baht stays weak and poultry selling prices rise.
As of 14.35 local time in Thailand, the share price of GFPT Pcl. (SET: GFPT) rose THB0.50/share or 2.79% to THB18.40/share, with a trading value of THB422 million.
The share price of Thaifoods Group Pcl. (SET: TFG) rose THB0.35/share or 6.36% to THB5.85/share, with a trading value of THB252 million.
The share price of Charoen Pokphand Foods Pcl. (SET: CPF) rose THB0.25/share or 0.95% to THB26.50/share, with a trading value of THB1,063 million.
The price of chicken has risen by 2.0% over the past two weeks, reaching THB41.80/kg, while the price of swine has remained stable, albeit it is somewhat high, according to KGI Securities (Thailand). Meanwhile, pork prices in China and Vietnam improved.
KGI said that the increase in domestic meat prices would lead to a rise in producer spreads of 11.3% MoM for pigs and 5.2% MoM for chickens, which would boost the margin for exporters.
CPF, GFPT, and TFG all receive a “BUY” recommendation from KGI, but TFG is rated as the Top Pick.
