CGS International Securities (Thailand) (CGSI) wrote that GFPT Public Company Limited (SET: GFPT) reported a robust net profit of THB 770 million for 3Q26, marking an 8% year-on-year and 16% quarter-on-quarter increase, bolstered by higher other income, strong contributions from associates, and reduced finance costs. This performance exceeded Bloomberg’s consensus forecast by 14%.
Total revenue for the quarter rose 2% year-on-year and 9% quarter-on-quarter to THB 4.8 billion, mainly due to increased domestic sales volumes and firm pricing. The food business segment generated a revenue increase of 7% year-on-year to THB 2.3 billion, compensating for a weaker performance in the farm and feed segments. However, export chicken volume dipped 6% year-on-year, largely due to lower shipments to Malaysia and China.
Meanwhile, gross margin narrowed to 17.8% in 3Q26 compared to 20.3% a year earlier, due to cost inflation outpacing revenue gains. The SG&A-to-sales ratio remained largely stable at 7.4%. GFPT’s nine-month net profit reached 90% of CGSI’s full-year 2026 forecast, leading to a raise of 7.96%.
The brokerage maintains its 2027-2028 targets and reiterates an ‘Add’ recommendation, highlighting GFPT’s positive export outlook, stable profitability, strong balance sheet with low leverage, and attractive valuation.
During the third quarter, associate profit share of the meat producer climbed 41% year-on-year to THB 159 million, driven by stronger results from GFN and McKey, while reduced borrowings decreased finance costs by 32%. Looking ahead, an estimated 500 tonnes of delayed export shipments are expected to boost fourth-quarter export volumes, stabilizing gross margins despite rising feed costs.
Though FY27 may be pressured by the full depreciation from a new slaughterhouse that has doubled processing capacity, prospects for FY28 are seen as stronger, with anticipated higher utilization and the launch of an additional processing plant in late 2027 expected to drive further earnings growth.
GFPT’s target price remains unchanged at THB 11.30, according to CGSI, based on 2027 EPS and a P/E ratio of 6x, representing a 20% discount to the sector’s 12-month forward P/E. Downside risks include weaker export demand and higher feed costs, while upside could be realized from stronger exports or quicker capacity ramp-up.
