{"id":324044,"date":"2023-07-13T01:12:13","date_gmt":"2023-07-12T17:12:13","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=324044"},"modified":"2023-07-13T01:12:14","modified_gmt":"2023-07-12T17:12:14","slug":"stock-in-focus-century-pacific-foods-inc-cnpf-13-july-2023-by-ab-capital-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-century-pacific-foods-inc-cnpf-13-july-2023-by-ab-capital-securities\/","title":{"rendered":"Stock in Focus: Century Pacific Foods, Inc. (CNPF) – 13 July 2023 by AB Capital Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>CNPF<\/td><\/tr>
Company Name<\/strong><\/td>Century Pacific Foods, Inc.<\/td><\/tr>
Broker<\/strong><\/td>AB Capital Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>13 July 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 29.10<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

In the near-term, we see the stock to continuously trade in a range between P26.00 – P24.00 translating to a forward P\/E range of 16.6x \u2013 15.3x. We think CNPF is close to full valuation at this point with consensus penciling-in a target price of P29.10 per share.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

CNPF will raise its CapEx this year to P3.5 billion from an initial budget of P2 billion to expand the capacity of their meat business, pet food business, coconut business and their packaging unit. CNPF\u2019s Executive Chairman Chris Po aims to secure the future growth of the business through these investments.<\/p>\n\n\n\n

Sales guidance tempered to 10 \u2013 11%<\/strong><\/p>\n\n\n\n

During the company\u2019s Annual Stockholders\u2019 Meeting (ASM), CNPF reduced the top-end of their revenue guidance for 2023 from a range of 10 – 15% to 10 \u2013 11% due to the challenges faced by the consumers. Notwithstanding, net income guidance growth of mid to high single digit was maintained given the view of a stronger second half performance on easing inflationary pressures.<\/p>\n\n\n\n

CNPF also expects for their margins to have bottomed out in the first quarter of 2023 on the back of easing input costs. CNPF\u2019s shelf-stable products will remain to be in high demand and should anchor the company\u2019s performance during the year. We\u2019ve preferred consumer manufacturers this year on the view of easing margin pressures which has been affirmed by CNPF.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>