DBS Bank has reiterated its “BUY” recommendation for Charoen Pokphand Foods Public Company Limited (SET: CPF), following exceptional profit growth in the first quarter of 2025. The company posted a core profit of THB8.5 billion, a dramatic increase compared to THB491 million during the same period in 2024.
This impressive performance was driven by elevated swine prices across major markets, which pushed the gross profit margin (GPM) to 18.5%, a 6.5 percentage point improvement year-on-year. Contributing factors included a constrained supply due to the resurgence of African Swine Fever (AFS) and advantageous prices for essential raw materials.
The company’s prospects remain strong heading into the second quarter of 2025, as meat prices have shown healthy trends quarter-to-date.
DBS continues to advocate a “BUY” stance, raising the target price to THB31.50, which is based on 0.99 times the forecasted price-to-book value for FY2025.
