Charoen Pokphand Foods: China remains the key market

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Charoen Pokphand Foods: China remains the key market

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Charoen Pokphand Foods

China remains the key market

Maintain Rating: NEUTRAL | PO: 22.20 THB | Price: 19.20 THB

Valuation at trough, awaiting inflection 19 June 2026

CPF's valuation appears to have reached trough levels, in our view. At Bt19.2 per share, Equity

stripping out the market value of its holdings in CPALL and CPAXT implies a residual

equity value of only Bt0.70 per share, equivalent to 0.81x core P/E. While this appears Sarachada Sornsong ^^^ Research Analyst

attractive on the surface, we believe CPF’s high leverage and lingering uncertainty over Kiatnakin Phatra Securities

the outlook for its operations, particularly in China, largely explains the discount. In our +66sarachada.sorn@kkpfg.com2 305 9197

view, a sustained re-rating would require clearer evidence of a recovery in China hog

prices, for which evidence remains largely absent at this stage. We therefore maintain

our Neutral rating with PO of Bt22.2.

Stock Data

Improved domestic sentiment, but upside seems limited Price 19.20 THB

Thai swine prices rebounded to Bt62/kg from the trough of Bt56/kg in Feb, 10% above Price Objective 22.20 THB

estimated breakeven. The recovery has been driven by higher feed raw material costs Date Established 16-Dec-2025

and government-led supply reduction measures implemented over recent quarters. Investment Opinion A-2-7

However, as the rebound has been largely cost-driven and with no significant additional 52-Week Range 18.10 THB-24.70 THB

supply cuts expected, we see limited scope for further upside in Thai swine prices. Mrkt Val / Shares Out (mn) 5,050 USD / 8,611.2

China hog prices remains the main overhang MarketAverageValueDaily (mn)Value (mn) 165,33615.13 USDTHB