Earnings Report /
Thailand

GFPT PCL: Aligned with our model; YoY core turnaround expected for 3Q22

  • Net and core profits consistent with our estimates

  • GFPT posted a net profit for 2Q22 of Bt454m

  • We model a Bt500m core profit for 3Q22

Bualuang Securities
15 August 2022

GFPT is our top pick in the Agro-Food space, from foreseen YoY core turnaround in 2H22 and the sustained high chicken price through YE22.

Net and core profits consistent with our estimates

GFPT posted a net profit for 2Q22 of Bt454m, up a robust 150% YoY and flattish QoQ. Excluding two extra items in 2Q22—Bt3m FX loss and Bt27m loss from derivative hedging—core profit was Bt484m for the quarter, up a whopping 176% YoY and 20% QoQ. Net and core profits were in line with our model. Sales were aligned with our forecast but GM of 16.2% beat our previous estimate of 15.5% and was above 10.4% in 2Q21 and 14.2% in 1Q22. After-tax profit beat our model by 7%. Equity profit from McKey and GFN were 12% and 4%, respectively, below our estimates, led by lower export sales volume than modeled.