Earnings Report /
Thailand

Thaifoods Group PCL: Robust results; YoY profit jump expected in 2Q22

  • Exceeded our estimates by a mile

  • TFG posted a 1Q22 net profit of Bt619m

  • The YoY core profit jump was led by a robust sales rise

Prasit Sujiravorakul
Prasit Sujiravorakul

Equity Research Analyst

Bualuang Securities
13 May 2022

Our TRADING BUY stands, based on its YoY core earnings jump starting 1Q22-4Q22 and its attractive valuation—2022 PER of 10.8x.  

Exceeded our estimates by a mile

TFG posted a 1Q22 net profit of Bt619m, up 39% YoY and 335% QoQ. Excluding four extra items in 1Q22—Bt88m FX gain, Bt58m loss on biological assets, Bt0.5m in a reversal of asset impairment expense and Bt62m loss from a change in fair value of financial assets—it posted a Bt650m core profit for 1Q22, up 48% YoY and a QoQ turnaround from a Bt102m core loss in 4Q21. Net and core profits beat our estimates by 55% and 117%, respectively, thanks to higher sales and GM than estimated. Sales beat our model by 5% led by higher-than-modeled chicken sales. GM of 15.3% surpassed our 11% estimate (and 12.3% in 1Q21 and 8.5% in 4Q21). After-tax profit beat our model by 119%.