Earnings Report /
Thailand

GFPT PCL: 1Q22 a big beat; a YoY robust profit jump expected in 2Q22-4Q22

  • Exceeded our expectations significantly

  • GFPT posted a net profit for 1Q22 of Bt456m

  • GFPT’s export volume to Japan in 1Q22 was 3.9k tonnes, up 63% YoY

Prasit Sujiravorakul
Prasit Sujiravorakul

Equity Research Analyst

Bualuang Securities
13 May 2022

GFPT remains our top pick in the Agro-Food space, premised on its YoY robust earnings jump starting 1Q22-4Q22.

Exceeded our expectations significantly

GFPT posted a net profit for 1Q22 of Bt456m, up a robust 652% YoY and 741% QoQ. Excluding three extra items in 1Q22—comprising Bt1m FX loss, Bt29m gain from derivative hedging and Bt22m gain from the sale of spare parts (net of tax)—core profit was Bt405m for the quarter, up massively 906% YoY and 2,794% QoQ. Net and core profits beat our estimates by 79% and 58%, respectively, thanks to higher sales, GM and equity income from GFN than modeled. Sales exceeded our forecast by 6%. GM was 14.2% in 1Q22, a big improvement from 9.7% in 1Q21 and 5.6% in 4Q21 and our previous 12% estimate. After-tax profit beat our model by 47%. McKey’s profit was aligned with our model but GFN’s net profit exceeded our estimate by 358%.