Charoen Pokphand Foods Public Company Limited (SET: CPF) released its 3Q2024 performance report last week, revealing a net profit of THB 7,308 million, compared to the same period the previous year that saw THB 1,810 losses, flipping the first nine-month period of last year losses of THB 5,328 million to this year net profit of THB 15,385 million.
The surge of fortune was mainly attributed to better pricing for pigs from balanced supply and demand, increasing demand due to the swine disease outbreak in China, reduced cost of animal husbandry from improved management efficiency, cheaper animal feed, and profit from consortium and joint ventures.
Following this turnaround, analysts are quite bullish on Thailand’s leading meat producer, especially on the speculation of positive momentum in the final quarter of this year and moving forward.
Analysts from Yuanta Securities (Thailand) suggest “trading” CPF shares at a target price of THB 30 per share, as securities experts anticipated the chicken and pig prices and profits from joint ventures to decline in the next quarter.
Trinity Securities still advised “Buy” at a target price of THB 28 per share expecting 4Q2024 profit to remain high.
Krungsri Securities analysts gave a “Neutral” rating for CPF with a target price of THB 31 per share and still tout it as the securities Top pick, despite expecting a profit decline in 4Q.
KGI Securities (Thailand) also remains “Buy” at a target price of THB 28.50 per share, and the securities are also forecasting a profit slump in 4Q.
Kasikorn Securities still suggests “Buy” at a target price of THB 29.50 per share, expecting profit to keep growing but slow down in 4Q.
Phillip Capital expects sales to rebound after the Vegetarian Festival in October due to tourism and festive season, recommending “Buy” at a target price of THB 29.50 per share.
Tisco Securities expects QoQ decline in performance for the fourth quarter due to weaker livestock prices, but overall costs should remain lower. The firm recommends “Buy” at THB 29.00 per share.
Additionally, market consensus polled by LSEG points to a target price of THB 29.22 per share with 13 analysts recommending BUY and one recommending Hold.
