The share price of pork producers in Thailand are expected to start recovering after the government body is taking a serious approach on subjugating illegal pork imports.
Pork producers in Thailand, especially Charoen Pokphand Foods Public Company Limited (SET: CPF), were under pressure of lower pork prices in Thailand over 30% this year. Meanwhile, illegal import of pork also took the market share of major producers with their low prices that came with low quality meat.
The report of the Department of Special Investigation (DSI) prosecuting and issuing arrest warrants on five companies and directors of six other shipping companies last week gave a small boost to pork producers’ share price on Friday, but a significant change should come in the fourth quarter, according to analysts.
CPF has mixed recommendations recently as analysts were divided on “BUY” and “HOLD”. However, the target price for “HOLD” recommendations around THB20-22 a share is still higher than the current trading price of THB18.50 per share, while the target price for “BUY” recommendations is around THB23-24 per share, according to IAA Consensus.
