Earnings Report /
Thailand

Thaifoods Group PCL: In-line results; decent YoY core profit growth expected for 2Q21

  • Consistent with our model

  • TFG posted a 1Q21 net profit of Bt445m

  • We model a Bt500m core profit for 2Q21

Bualuang Securities
13 May 2021

Our TRADING BUY stands, based on the YoY stronger 2Q21 core earnings rise led by higher Thai pork price and stronger feed sales and volume. The key risk factor is the higher SBM cost in 2H21.

Consistent with our model  

TFG posted a 1Q21 net profit of Bt445m, down 31% YoY but up 4% QoQ. Excluding four extra items in 1Q21—Bt10m FX loss, Bt35m gain on biological assets, Bt15m in asset impairment expense and Bt2m loss on land value appraisal—core profit was Bt438m, up 9% YoY but down 8% QoQ. Net and core profits were aligned with our models. Sales beat our model by 2% while GM of 12.3% exceeded our 11.5% estimate (against 12.3% in 1Q20 and 12.6% in 4Q20).