Finansia Syrus Securities has maintained its “Buy” recommendation on Charoen Pokphand Foods (SET: CPF), setting a target price of THB 24 per share. The brokerage highlights that CPF continues to benefit from the upward trend in commodity food prices, aligning with rising oil prices.
Pork prices in Thailand have increased to 68 baht per kilogram from 62 baht at the end of March, while chicken prices have seen a modest rise to 44 baht per kilogram. In Vietnam, pork prices remain robust at 63 thousand dong per kilogram. However, Chinese pork prices remain subdued at 9.4 yuan per kilogram.
Additionally, CPF is projected to gain from profit-sharing with CPALL, whose performance remains strong, and from a positive same-store sales growth (SSSG), which is believed to give the company sufficient pricing power to offset cost increases.
CPF is classified as a laggard trade, currently trading at a price-earnings ratio (PER) of only 10 times and offering a 5% dividend yield, making it an attractive opportunity from a valuation perspective.
Finansia Syrus identifies support levels at 20.70 and 20.30 baht, while resistance is seen at 21.30–21.50 and 22 baht.
