CP Foods up on hopes of higher earnings.
Noticias del día19 de mayo de 2003
Bangkok (May 7, 2003) - Charoen Pokphand Foods shares were higher on hopes the company´s earnings will improve on the back of higher orders following the SARS outbreak, which has affected shipments from its competitors elsewhere in the region, dealers said...
Bangkok (May 7, 2003) - Charoen Pokphand Foods shares were higher on hopes the company´s earnings will improve on the back of higher orders following the SARS outbreak, which has affected shipments from its competitors elsewhere in the region, dealers said..
At 10:44 am, Charoen Pokphand Foods was up 0.30 baht or 8.67 pct at 3.76 on trade of 296,804 lots. The stock earlier touched a high of 3.84 and a low of 3.50.
The agribusiness sector added 2.41 points or 5.10 pct at 49.61.
The SET index was up 2.11 points or 0.56 pct at 377.35.
A dealer with Syrus Securities said Charoen Pokphand Foods was actively traded on expectations that the company´s orders will increase, following disruption of shipments from its competitors in the region due to the SARS outbreak..
The dealer said part of the stock´s gains can also be attributed to rotational interest as investors switched to the agribusiness sector.
BT Securities said in a report that it expects Charoen Pokphand Foods to report weak results for the first quarter of this year as product prices were weaker on both quarterly and yearly basis.
In the first quarter of this year, chicken price stood at 18-19 baht per kilogram against 20-21 baht in the fourth quarter and compared with 29-31 baht in the first quarter of 2002.
Charoen Pokpahnd Foods´ shrimp feeds business is expected to be affected by the spread of SARS, with the business seen registering growth of only 5 pct this year.
However, the company is expected to recover in the second quarter due to higher chicken price as local supply falls while exports increase, the report said, adding that the chicken business is likely to recover significantly in the second half of this year.
Nonetheless, BT Securities said it maintains its net profit forecast for Charoen Pokphand Foods for this year at 2.87 bln baht, assuming the average chicken price at 25 baht per kilogram.
Elsewhere in the sector, GFPT added 1.80 baht to 23.60 on 10,625 lots, while Asian Seafood Coldstorage was up 0.30 at 7.00 and Seafresh Industry was up 0.10 at 4.32.
Source : AFX Asia
