On Friday, the share price of GFPT Public Company Limited (SET: GFPT) at the time of 11:30 a.m. was at THB 9.75, a THB 0.40 or 4.28% increase with a total trading value of THB 115.97 million.
Liberator Securities assesses that GFPT’s operating performance in 2Q26 is likely to surpass prior expectations. The positive outlook is attributed to higher selling prices, increased sales volume, and continued efficient cost management, which has helped cushion the impact of rising raw material costs that have not yet fully materialized.
Sales for 2Q26 are forecasted at THB 4,661 million, representing a 5% decrease year-on-year but a 9% improvement quarter-on-quarter. The food business segment, contributing about 45% of total sales, is expected to see increased sales compared to the previous quarter, driven by the start of the export season.
As a result, sales volume is projected to rise by 7% to approximately 8,000 tons, although this marks a 6% drop YoY due to the absence of exports to China since 4Q25. Nevertheless, average selling prices have climbed by about 3 – 4%.
For the farm business segment, which accounts for roughly 39% of sales, revenue is anticipated to be stable QoQ, supported by a 2 – 3% increase in selling prices. The animal feed segment, making up 16% of total sales, is set for growth, mainly from higher shrimp feed sales, while land animal feed benefits from price adjustments in response to elevated costs, resulting in an average price increase of 7 – 8%.
Gross profit margin is projected to improve to 16.5% from 14.6% in the previous quarter, supported by higher selling prices and increased export volume. Additionally, the company still holds low-cost raw materials in inventory, minimizing the immediate impact of higher input costs.
However, profit share from affiliates is expected to be THB 132 million, down 33% YoY and 10% QoQ. The main reason is the weaker performance of GFN, which suffered from a significant drop in by-product prices.
Selling, general, and administrative expenses (SG&A) are forecasted to rise by 4% YoY and 14% from the previous quarter, reflecting higher export volumes and increased logistics costs. Interest expenses are projected to remain stable QoQ but decrease 17% YoY, following a reduction in debt burden.
Liberator noted that while there are still factors to monitor, the outlook for 2Q26 profit is better than expected, complemented by effective cost management, price increases, and potential upward revisions in profit forecasts. This positions GFPT as an attractive speculation stock.
Furthermore, expected seasonal factors and a rebound in chicken prices are likely to support earnings in the second half of the year. The “Buy” recommendation is maintained, with a target price of THB 10.60.
