Charoen Pokphand Foods

Charoen Pokphand Foods Plc (CPF)
 

The end of the EU ban on raw chicken imports from Thailand will benefit CPF from 2H12 onwards as export volume could double. Meanwhile, the domestic business will gain indirectly from higher prices. We project our EPS estimates would rise 3-4% once chicken exports climb back to pre-bird flu levels, not counting the indirect benefit of higher domestic chicken prices thanks to stretched supply. Outperform and SOP-based target price maintained.