May 27, 2010

 

Thailand's CPF hits record chicken price at US$1.47

 
 

The price of chicken in Thailand's Charoen Pokphand Foods has reached THB 48 (US$1.47) per kilogramme from mid-May up to present, the historical high ever.

 

On the other hand, the pork price has sustained high at THB 63 (US$1.47) per kilogramme from early February to the current date, the level near April 2009's peak of THB 65 (US$1.47) per kilogramme.

 

The egg price has peaked at THB 2.80 (US$0.09) per piece again from mid-May up to present, the same level as in late February. The domestic shrimp price has been maintained high at THB 145 (US$4.45) per kilogramme since April.

 

For raw material prices, corn price has peaked at THB 9.25 (US$0.28) per kilogramme during April-May, the level near September 2008. Soymeal (SBM) price has maintained at THB 14.80 (US$0.45) per kilogramme from Feb to May.

 

The key advantage to strengthening domestic chicken price will be the potential new import orders of raw chickens from Japan expected in 2010. A buy rating is reiterated with the target price of THB 21 (US$0.64), based on strong FY10 earnings growth of 37% bolstered by both domestic and overseas units, a good yield of 6% and a 16% discounted valuation.
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