Mr. Prasit Boondoungprasert, Chief Executive Officer of Charoen Pokphand Foods Public Company Limited (SET: CPF), made a statement regarding the company’s 2025 strong performance, while speculating that its operation in 2Q25 would remain strong despite weak pork prices after entering the rainy season. The price, however, is still above the company’s expectation.
As for CPF’s performance in the international market, it is going according to the company’s speculation and surpassing in some countries. The situation in Vietnam is easing back to normal, while the tension with Cambodia is not generating any negative factor that would affect the operation in the country. Nonetheless, CPF will monitor the situation closely.
CPF expects that its effort in bringing various systems to improve the operation efficiency, especially the biosecurity in husbandry, would generate cost to compete in the market and develop toward sustainable innovation. This would allow the company to deliver satisfaction to all stakeholders.
Yesterday, CPF’s stocks settled lower at THB 22.8 per share, a 8.80% decrease, with a total trading value of THB 1.84 billion.
Mr. Wiravat Wirojpoka, Senior Director of Securities Analysis of FSS International Investment Advisory Securities, informed that the decrease of CPF’s stock price is due to the reduction in meat price, both chicken and pork. The pork price in Thailand had dropped to THB 80 per kilogram, a 4% decrease MoM, while the price in China fell 4% MoM as well.
The pork and chicken prices in Vietnam also fell slightly due to the large number of both animals entering the slaughterhouse. The rainy season has increased the supply but the demand rate remains low due to the slow down in the consumption rate that aligns with the economic situation.
There was also a concern about a report last week, stating that CP’s meat selling in Vietnam is being questioned regarding its quality. The CP in Vietnam stated that the information is misleading as it meant to discredit the company.
Thanachart Securities informed that China announced strict control on pork price intervention after the price dropped from an average of CNY 17 per kilogram to CNY 15 per kilogram. This decrease was due to the weak demand causing the manufacturers to purchase pigs from farms to delay the slaughtering process. This method helps control the excessive supply and delay the drop of pork price.
Following China’s control measure, the market became more concerned that the pork price would decrease even more, pressuring CPF’s stock price to drop. Last week, the pork price dropped to CNY 14.71 per kilogram, which is acceptable for the large farm industry but not the small one.
Nonetheless, the analysis viewed that the government’s measure would not cause the supply rate to increase significantly. CPF also expected the pork price in China to drop and estimated that it would not affect the revenue of the company’s group as it is being supported by the businesses in Thailand and Vietnam.
Thanachart Securities recommends “BUY” on CPF’s stock with a fair price at THB 28 per share.
