Charoen Pokphand Foods
The new CPP doesn't disappoint OUTPERFORM - Maintained Share price: Bt36.50 Target price: Bt48.00
Charoen Pokphand Foods Plc (CPF)
CPP’s strong FY11 results cement our view that the acquisition is value-accretive for CPF. Through CPP, CPF should also benefit from the rising per capita consumption in populous China and Vietnam, and from industry consolidation as food safety standards are tightened. With a strong showing from CPP, we are now more confident of the 9-19% EPS accretion in CY12-14 that has been built into our model. We maintain our Outperform call and SOP-based target price of THB48.
