Pi Securities issued a report in January advising a ‘Neutral’ rating for meat product-related stocks and chose CPF as its preferred stock. This is driven by optimistic market sentiments post the recovery of poultry prices in December and continuously high levels of pork prices. The upward trend has bolstered the growth projections from the analyst for companies such as CPF and GFPT, with an anticipated positive performance in 4Q24.
Meat prices in Vietnam dipped below VND 60,000 per kilogram in November before recovering in December. Meanwhile, despite a decline in pork prices in China, their level remained higher than costs. The analyst anticipated that meat prices in Thailand would stay elevated in January, driven by heightened demand during the Chinese New Year celebrations at the end of the month.
Furthermore, KGI Securities (Thailand) issued an ‘Outperform’ rating for BTG, setting a base price of THB 22.8 per share. This optimistic assessment was driven by the rebound in meat prices alongside consistently low average costs for animal feed.
Within the domestic market, farm poultry prices saw a recovery, while farm pork prices remained steady. Notably, soybean meal prices in Thailand have been on a consistent decline to a new low, counterbalancing the increase in corn prices utilized in animal feed production. This dynamic has led the analyst to anticipate a continuous improvement in gross profit margins of BTG, further supported by the company’s planned capacity expansion in 2025.
