Carabao Group Public Company Limited (SET: CBG) closed in the morning session on November 14 at THB 94.50 per share, decreased THB 4.00 or 4.06%. The highest price was at THB 95.50 and the lowest was THB 94.25 per share, with a total trading value at THB 606.66 million.
The decrease in share price of CBG came after the company announced its 3Q22 financial statement, with a net profits by -21% YoY, due in large part to prices for raw materials and packaging materials as well as utility related expenses that went up.
Moreover, sales of glass bottles i.e. in the form of packaging materials to outside parties declined as well.
The revenue from sales amounted to THB 4,695 million, up by +19% YoY, while the revenue from sales of its branded own products was THB 3,266 million, up by +21% YoY, due to expansions in both domestic and overseas markets.
Gross profits amounted to THB 1,360 million, up by +1% YoY, which were equivalent to a gross profits margin of 29% versus 34% a year ago, resulting from prices for major raw materials and packaging materials as well as utility related expenses that went up alongside changes in product mix.
According to Capital Nomura Securities PCL (CNS), the outlook for the fourth quarter of 2022 will be lower because overseas sales expectations have slowed, but still higher than the previous quarter due to prices of major raw materials decreased. CNS has given a “BUY” recommendation in 2023, with a target price of THB 111 per share, based on PE 32x