CPF to benefit from higher egg prices
Charoen Pokphand Foods Plc stands to benefit the most from the submerge of an egg-hen farm in Ayutthaya, as this would raise egg prices, said Tisco Securities.
The farm raises 1 million hens and the authorities are scrambling for ways to contain the methane gas, to be generated by the dead animals.
In its research note, Tisco Securities said that the egg-hen farm has annual capacity of 175 million eggs. CPF's farms are located sparsely in provinces. Its combined annual capacity was 2 billion eggs.
"Historically, demand for agricultural products will rise in a faster speed than supply," it said.
It expects CPF to post the net profit of Bt15.9 billion this year, 17.5 per cent up from last year.
CPF is one of stocks expected to benefit from the government's post-flood reconstruction, which include Siam Cement, Siam City Cement, Home Products Centre, Siam Makro, Ch Karnchang and Italian-Thai Development. Those which will be affected financially from the floods include Rojana Industrial Park, Ticon Industrial, Hana Microelectronics, Somboon Advance Technology and Aapico Hitech.
