Earnings Report /
Thailand

Charoen Pokphand Foods: Exceeded our model; YoY core turnaround expected in 4Q22

  • Core profit beat our estimate

  • CPF posted a 3Q22 net profit of Bt5.11bn

  • We model a Bt2.98bn core profit for 4Q22

Bualuang Securities
15 November 2022

We revised up our 2022 net profit forecast by 11% (to Bt15.66bn) and core profit projection by 21% (to Bt12.57bn) to reflect higher equity income from both CPALL and CTI. Our new target price of Bt33.60/share reflects the roll-over to YE23.

Core profit beat our estimate

CPF posted a 3Q22 net profit of Bt5.11bn, a YoY turnaround from a Bt5.37bn net loss for 3Q21 and up 21% QoQ. Excluding extra items in 3Q22—Bt394m FX gain, Bt837m loss from biological assets and Bt22m in after-tax gain from trading CPALL shares—it posted a Bt5.53bn core profit for 3Q22, against a Bt4.96bn 3Q21 core loss and up 67% QoQ. Net and core profits beat our estimates by 9% and 23% thanks to bigger-than-expected profits from CPALL and CTI. GM of 15% was slightly below our estimate of 15.3% (against 8.8% in 3Q21 and 14.5% in 2Q22). Equity income beat our model by 100%, mainly led by CPALL and CTI.