Earnings Report /
Thailand

Thaifoods Group PCL: Beat our estimate by a mile; robust profit expected in 3Q22

  • Exceeded our estimates massively

  • TFG posted a 2Q22 net profit of Bt1.24bn

  • We model a Bt1.6bn 3Q22 core profit

Bualuang Securities
11 August 2022

Our TRADING BUY stands, based on its YoY core earnings turnaround in 2H22 and its cheap valuation—2022 PER of 7.6x.  

Exceeded our estimates massively

TFG posted a 2Q22 net profit of Bt1.24bn, up 188% YoY and 100% QoQ. Excluding four extra items in 2Q22—Bt116m FX loss, Bt191m loss on biological assets, Bt17m in asset impairment expense and Bt41m gain from a change in fair value of financial assets—it posted a Bt1.52bn core profit for 2Q22, up 368% YoY and 134% QoQ. Net and core profits beat our estimates by 49% and 98%, respectively, thanks to higher sales and GM than estimated. Sales beat our model by 8% led by higher-than-modeled sales from all three segments – pork, chicken and feed. GM of 22.3% beat our 16.3% estimate (and against 11.5% in 2Q21 and 15.3% in 1Q22). After-tax profit beat our model by 95%.