Company Coverage
Charoen Pokphand Foods Plc. (CPF TB) 2Q26: Earnings Drop Due To Decrease Of Livestock Price; Strong Earnings Momentum In 2H26, Livestock Prices To Trend Up
BUY (Maintained)
Current price:
Target price:
Upside:
Bt21.80
Bt25.00
14.68%
Analyst
Nichapa Ratchabandit Nichapa@uobkh.co.th +662 090 3366
Nichapa Ratchabandit Nichapa@uobkh.co.th +662 090 3366Nichapa Ratchabandit Nichapa@uobkh.co.th +662 090 3366
Highlights
CPF reported a 2Q26 core profit of Bt4.6b (-58% yoy, +6% qoq), which exceeded both our and consensus expectations of Bt3.4b and Bt4.0b, respectively.
We expect a strong earnings momentum in 2H26. We remain positive on CPF’s outlook, supported by the qoq and yoy recovery in domestic livestock prices
Maintain BUY with a target price of Bt25.00.
Analysis
Earnings beat expectations. Charoen Pokphand Foods (CPF) reported a 2Q26 net profit of Bt4.1b (-61% yoy, -16% qoq). Excluding one-off items (fx and biological assets), 2Q26 core profit came in at Bt4.6b (-58% yoy, +6% qoq). The core profit exceeded both our and consensus expectations of Bt3.4b and Bt4.0b respectively. The earnings beat was due to: a) higher than-expected gross profit margin and sales, and b) lower-than-expected SGA.
2Q26 gross profit margin came in better than expected. Gross profit margin for 2Q26 came in at 15.0%, down from 19.8% in 2Q25 and 15.6% in 1Q26. The decrease in gross profit margin was mainly attributable to the lower gross profit margin of its Thai and oversea livestock businesses. SGA to-sales for 2Q26 was 8.5%, down yoy and qoq.
China swine prices remain a key driver of profit share and earnings recovery. Share of profit in 2Q26 was reported at Bt1.2b (-66% yoy and 11% qoq), mainly pressured by losses from CTI, following the decline in China’s swine prices in 2Q26.
Highlights
CPF reported a 2Q26 core profit of Bt4.6b (-58% yoy, +6% qoq), which exceeded both our and consensus expectations of Bt3.4b and Bt4.0b, respectively.
We expect a strong earnings momentum in 2H26. We remain positive on CPF’s outlook, supported by the qoq and yoy recovery in domestic livestock prices
Maintain BUY with a target price of Bt25.00.
Analysis
Earnings beat expectations. Charoen Pokphand Foods (CPF) reported a 2Q26 net profit of Bt4.1b (-61% yoy, -16% qoq). Excluding one-off items (fx and biological assets), 2Q26 core profit came in at Bt4.6b (-58% yoy, +6% qoq). The core profit exceeded both our and consensus expectations of Bt3.4b and Bt4.0b respectively. The earnings beat was due to: a) higher than-expected gross profit margin and sales, and b) lower-than-expected SGA.
2Q26 gross profit margin came in better than expected. Gross profit margin for 2Q26 came in at 15.0%, down from 19.8% in 2Q25 and 15.6% in 1Q26. The decrease in gross profit margin was mainly attributable to the lower gross profit margin of its Thai and oversea livestock businesses. SGA to-sales for 2Q26 was 8.5%, down yoy and qoq.
China swine prices remain a key driver of profit share and earnings recovery. Share of profit in 2Q26 was reported at Bt1.2b (-66% yoy and 11% qoq), mainly pressured by losses from CTI, following the decline in China’s swine prices in 2Q26.
BUY (Maintained)
Current price:
Target price:
Upside:
Bt21.80
Bt25.00
14.68%
Analyst
Nichapa Ratchabandit Nichapa@uobkh.co.th +662 090 3366
Nichapa Ratchabandit Nichapa@uobkh.co.th +662 090 3366Nichapa Ratchabandit Nichapa@uobkh.co.th +662 090 3366
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