TFG and GFPT moved higher on Tuesday as domestic poultry prices rose amid outbreaks of African Swine Fever (ASF), which affected the prices of pork. This caused both stocks to outperform their peers.
As of 11.24 hrs. local time in Thailand, the share price of Thaifoods Group Pcl. (SET: TFG) rose THB0.20/share or 3.08% to THB6.70/share, with a trading value of THB225 million.
The share price of GFPT Pcl. (SET: GFPT) rose THB0.40/share or 2.22% to THB18.40/share, with a trading value of THB139 million.
Meanwhile, the share price of Charoen Pokphand Foods Pcl. (SET: CPF) dropped THB0.25/share or 0.96% to THB25.75/share, with a trading value of THB586 million.
According to Finansia Syrus Securities, the management team of TFG anticipates that domestic chicken prices will remain elevated until 2023 due to the outbreak of African Swine Fever (ASF). The price of chicken in Thailand has reached a nine-year high due to the country’s robust demand. Also, chicken exports continue to be strong. Even with an increase in costs, a rising selling price can still offset the loss.
FSS revised up profit growth projection for TFG to THB2.85 billion from THB2 billion, and recommended a “BUY” rating with a target price of THB7.50
Kasikorn Securities recommended a “BUY” rating on GFPT with a target price of THB19.1.