Charoen Pokphand Foods
A passage to China Outperform, maintained Share price: Bt 30.75; target price: Bt 43.00 Food & Beverages sector
Charoen Pokphand Foods Plc (CPF)
We are positive on the acquisition of C.P. Pokphand as it would create the world’s fifth-largest agro-business player. China and Vietnam offer considerable potential in the food business given their vast populations and growing per-capital consumption. We expect an initial neutral impact on EPS but future business opportunities and synergies should lift EPS in the long term. Our Outperform rating and THB43 SOP target price are unchanged.
