Analysts are bullish on Charoen Pokphand Foods Public Company Limited (SET: CPF) following a turnaround season in its strong financial performance in 2024.
In the analysis note that rated CPF ‘Outperform,’ CLSA stated that core profit of 6,137 million baht in 4Q24 beat Bloomberg consensus by 46% and the house’s estimate by 63% on higher-than-expected sales and gross margin. The firm maintained an ‘Outperform’ rating with a target price of THB27.50 per share.
Meanwhile, Asia Plus Securities, who voiced a similar opinion on CPF, expects 1Q25 performance to record a strong growth following improved domestic consumption from the Chinese Lunar New Year festival and tourism. Additionally, exports continue to improve as well.
The firm rated CPF ‘Outperform’ while giving a target price at THB30.00 per share.
CPF’s sales revenue in 2024 amounted to THB 580,747 million, with 63% from international operations and 37% from Thailand domestic operations. Sales revenue decreased by 1% compared to the previous year due to (1) a decline in sales from the poultry business in China from the divestment of some integrated poultry operations at the end of 2023 and (2) the deconsolidation of sales from operation in Poland since the second quarter of 2024 due to the restructuring of the company’s investment in CPF Poland S.A., which changed its status from a subsidiary to an associate in the first quarter of 2024. Excluding these transactions, sales revenue would have increased by 2% from the previous year, driven by improved pricing across various countries, particularly in Vietnam, Cambodia, and the Philippines.
The company’s net profit attributable to shareholders in 2024 was THB 19,558 million, a 476% increase compared to a net loss of THB 5,207 million in 2023.
