Better-Than-Expected 1Q24 Results Show CPF Moving on Recovering Path

Operating results of Thai listed companies for the earnings season in the first quarter of this year were better-than-expected, and CPF is one of those companies that beat analyst and market expectations.

Charoen Pokphand Foods Public Company Limited, also known as CPF in the stock market, have been experiencing net losses for four straight quarters, up until the first quarter of 2024 that the company emerged from a negative territory to record a net profit of 1,152 million baht.

Despite extraordinary items, CPF still recorded nearly 250 million baht in core profit, beating CGS International Thailand’s estimate for a core loss of 1.5 billion baht and the market consensus for a 840 million baht. An increase in net profit was attributable to higher-than-expected gross profit margin and equity contribution.


CGSI has a positive view on CPF from the analyst meeting, citing the management outlook that Thailand, Vietnam and Cambodia should see an uptrend from swine prices amid the ongoing outbreak of African Swine Flu in Asia Pacific.

Meanwhile, the smuggling pork situation has eased due to lower supply in export countries as they also have disease outbreaks.

Swine price in China, which is the catalyst for CPF’s growth in the first quarter, is expected to continue increasing in the second half of this year amid lower production cost for chicken and swine in all ket regions.

CGSI wrote in its note that the brokerage company believes that CPF’s earnings are on track to recover, especially swine operations in Thailand and Vietnam. The firm maintained an ‘Add’ recommendation at a target price of THB22.90 per share.