The performance of Charoen Pokphand Foods Public Company Limited’s (SET: CPF) is expected to show a strong growth in 2025, following positive outlook from the analyst and the company’s executives for higher margin.
Bualuang Securities suggested “Buy” CPF at the target price of THB 30, after seeing 2025 as the year of opportunity, due to CPF executives’ positive outlook for 2025 driven by factors including an increase in meat prices, lower cost in animal feeds, and more efficient operation. The biggest factor is the company’s “Agri-Sustain-ovation” strategy that combines sustainability with innovation to maximize and drive future profit.
Kobboon Srichai, Head of Corporate Affairs & Investor Relations, Worawut Siritantikorn, and Prang Shudasri, Vice President of Investor Relations and Capital Market at CPF, have collectively shown confidence that the company’s turnover momentum will remain strong in the first half of 2025, supported by many factors including higher meat price, lower cost on animal feed, size of the business that did not hinder profit, and improving efficiency on the entire supply chain. CPF has pointed out that these factors have driven the company’s strong performance in the past, and in the near future.
Meanwhile, CPF’s executives have emphasized innovations that drive the company’s ESG in all directions, increasing efficiency, product quality, food safety, and reducing waste. Currently, CPF is operating: smart farming, utilizing bio-technology to produce animal feed that improves the immune system, using AI and 3D weighting on chicken, and processing waste from biogas and biomass for energy production. The company also collaborates on sustainable packaging and CPF (SAF) aviation fuel by using cooking oil from Chester’s and Five-Star restaurants.
The “Agri-Sustain-ovation” strategy not only eases the effect of fluctuation in consumer product prices but also attracts orders from customers in the European Union that emphasize sustainable operation.
Additionally, the profit margin is expected to grow in 2025. CPF is expecting meat prices to shoot up, and animal feed to slump from last year, which would affect the profit margin. CPF has an approximate chicken price in 2025 of THB 38 per kilogram, domestic pork price at THB 72 per kilogram compared to the cost of THB 67 per kilogram, Vietnam pork price at VND 64,000 per kilogram compared to the cost of VND 43,000 per kilogram, and China pork price of CNY 17 per kilogram compared to the cost of CNY 15 per kilogram.
CPF expects core profit in 2025 to decline from the previous year, but the company has suggested investors focus on 1H25 performance, which is expected to grow compared to the same period of last year. The cause of a decline in core profit is attributed to fluctuation in consumer product prices, but the current environment of demand and supply has assured a strong foundation. While CPF may be facing challenges, the company strategy and market position highlight the company’s potential to recover and grow in the future.
