Analysts Recommend Buying GFPT on Strong Broiler Price

Analysts anticipate further earnings growth for Thailand’s chicken exporters in the second half of the year, backed by a rising chicken price and robust demand on the domestic and international markets.

In the past two weeks, the price of broilers has increased by roughly 4 percent, while the price of swine has remained unchanged. Strong frozen chicken sales to the Korean, Chinese, and ASEAN markets supported a 5% YoY increase in April chicken exports to THB9.92 billion for Thailand.

Therefore, KGI securities favor pure chicken producers over swine producers and maintain GFPT Pcl’s (SET: GFPT) status as its top pick stock in the agricultural sector.

The outbreak of bird flu in the world’s biggest seller of chickens, Brazil, could also boost Thailand’s chicken exports, said KGI. 

Thailand is the world’s fourth biggest poultry exporter.

Meanwhile, the swine price is likely to pick up in the short term but should remain relatively weak. The decline in feed cost in 2Q23-3Q23 will be a supportive factor to meat producers.