Phillip Securities Thailand says CPF reported second-quarter 2026 net profit of 4.076 billion baht, down 61 percent from a year earlier, while sales revenue was 147.186 billion baht, flat from the prior year. Profit was pressured by low hog prices across the region, especially in China, as well as higher energy and freight costs. However, the company managed expenses and reduced financial costs better. The second half shows clear recovery signs, with hog prices in Thailand, Vietnam and China expected to improve, especially Chinese hog prices which could rise to 12 to 13 yuan per kilogram in the fourth quarter of 2026 after the government moved to cut the sow herd to address oversupply. In addition, the chicken export business has a positive outlook from the high season and strong demand in Japan and Europe. The company has also stocked raw materials for more than 100 days to manage risk from volatile corn prices. The IPO of its Vietnam business is still progressing, currently awaiting approval from regulators, with a target to launch the share sale within 2026, which would help unlock business value and strengthen its financial position. Phillip Securities maintains its 2026 profit forecast at 21.264 billion baht and a target price of 23.30 baht, implying upside of about 3.5 percent, while expecting a full-year dividend of 1.01 baht per share, a dividend yield of about 4.5 percent. It recommends gradually accumulating the stock.
Charoen Pokphand Foods Public Company LimitedHog prices expected to improve in H2 due to China's sow herd cut, boosting CPF's recovery.
