Charoen Pokphand Foods Public Company Limited (SET: CPF) announced a major share repurchase initiative, a move viewed by Krungsri Securities (KSS) as modestly positive for short-term share price sentiment, though not expected to materially impact the company’s fundamentals.
The buyback program allows for a maximum repurchase of THB 8 billion, encompassing up to 350 million shares, or around 4.16% of CPF’s total paid-up shares. Purchases will be conducted through the Stock Exchange of Thailand (SET) during the period from October 8, 2025, to April 7, 2026.
The repurchase price is subject to a ceiling of 115% of the average closing price over the five trading days preceding each transaction. Based on available information, the average buyback price is estimated at approximately THB 22.90 per share, which stands above the announcement day’s closing price of THB 22.30, and close to the 30-day average of THB 23 per share.
Funding for the program will come from CPF’s retained earnings and available cash, as part of the company’s strategy for managing excess liquidity and enhancing shareholder returns.
Krungsri believes this initiative could provide a temporary uplift to CPF’s share price, with the implied buyback price representing a premium of about 2.7% over the latest closing value. Still, the analyst does not anticipate any significant change to the company’s core fundamentals as a result of the buyback.
Looking forward, the brokerage firm remains optimistic about the business outlook, citing an expected recovery in meat prices in the fourth quarter of 2025 as tourism and consumption rebound post-rainy season. Raw material costs are predicted to remain low, supporting the 2025 forecast for normalized profits of THB 36,373 million, up 91% year-on-year.
Following these, Krungsri Securities maintains its ‘Buy’ recommendation on CPF with a target price of THB 38 per share.
Separately, Bualuang Securities (BLS) noted that CPF is anticipated to be able to deploy excess liquidity for the share repurchase program without impacting its capacity to meet debt obligations maturing within the next six months, which amount to THB 15 billion. As of the end of 2Q25, CPF’s interest-bearing debt to equity ratio stood at 1.8 times. Additionally, the stock is trading at a 2025 PER of just 6 times.
BLS maintains a ‘Buy’ rating on CPF with a target price of THB 27 per share, citing the stock’s attractive valuation.
