CPF Still Has a Room for Growth in 2021, Analyst Recomm. “BUY” with TP of ฿39
CPF Still Has a Room for Growth in 2021, Analyst Recomm. “BUY” with TP of ฿39
CPF Still Has a Room for Growth in 2021, Analyst Recomm. “BUY” with TP of ฿39
7 เม.ย. 2564

Analysts expected Charoen Pokphand Foods Public Company Limited (CPF) to show strong earnings in 2021 as meat price already passed its break-even point both in Thailand and overseas and the company has increased its pig production in China and Vietnam.
 
Chicken operation is expected to continue dull as production costs increase, but it would be offset by higher sales volumes when the country reopened, also aquaculture business is foresaw a recovery once lockdowns relaxed. Analysts estimated sales from aqua to fall 16% YoY to 492,957 million baht after a restructure of shareholder structure, while margin would dip slightly on a higher raw material cost. 
 
However, CPF would recognize a higher contribution from the associated companies such as CPALL and Hylife, and an acquisition of Tesco Lotus and CTI. 
 
Phillip securities forecasted CPF’s net profit of 27,631 million baht in 2021, an increase of 6% YoY, mainly driven by M&amp;A and a plan to launch plant-based products domestic in May, and after that will introduce worldwide in June. 
 
For the CBD business, CPF has signed an MOU with Maejo University and other institutions in working together to advance research and development opportunities for hemp production and healthy food products. The first product ever healthy hemp-based ready-made meals are expected to be launched within this year. However, the company is now waiting for certain regulations from Thai authorities.
Overall, Phillip securities maintained a “BUY” recommendation on CPF and a target price of ฿39.00/share.