KGI upgrades food sector to overweight on El Niño-driven meat price support

AnalystAnalystCommodity
โดย HoonVision·TH·Read original
Summary · why it matters

KGI Securities has raised its investment weighting for the food sector to "overweight" from "neutral," stating that tighter livestock supply and higher meat product prices will drive profit recovery in the second half of 2026 through 2027, outweighing pressure from potentially higher animal feed costs. The research house cited the August 2026 update report from the World Meteorological Organization, which said the probability of El Niño intensifying to a very strong level has increased and could persist into early 2027. Domestic meat prices remain firm, with broiler chicken prices up 9% year-on-year and 13% quarter-on-quarter at 45.5 baht per kilogram. Pork prices were flat year-on-year but rose 11% quarter-on-quarter to 75.5 baht per kilogram. Sensitivity analysis showed that every 0.1 percentage point increase in gross profit margin would boost 2027 forecast net profit for Betagro, GFPT and Thaifoods Group by approximately 2.4%, 0.7% and 1.1% respectively. GFPT is the top pick with a target price of 11.40 baht, while BTG remains rated positive with a target price of 25.40 baht. TFG has no rating.

Impact on stocks 3

Consumer Staples▲ · 2 stocks
GFPT Public Company Limited
GFPT
▲ PositiveCapitalrelevance

GFPT is KGI's top pick with an 11.40 baht target price, as higher meat prices and margin gains lift 2027 profit forecasts.

Betagro PCL
BTG
▲ PositiveCapitalrelevance

KGI keeps BTG rated positive with a 25.40 baht target price, citing El Niño-driven meat price support and margin sensitivity to 2027 profit.

Energy Transition & Power Demand▲ · 1 stocks
© 2026 MarketDXNews