{"id":324812,"date":"2023-09-07T13:26:41","date_gmt":"2023-09-07T05:26:41","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=324812"},"modified":"2023-09-07T13:26:43","modified_gmt":"2023-09-07T05:26:43","slug":"stock-in-focus-century-pacific-foods-inc-cnpf-7-sept-2023-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-century-pacific-foods-inc-cnpf-7-sept-2023-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Century Pacific Foods, Inc. (CNPF) – 7 Sept 2023 by RCBC 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>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>7 Sept 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 28.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We maintain our target price (TP) of Php28.00 for CNPF and recommend a HOLD as it is currently trading at fair value.<\/p>\n\n\n\n

<\/div>\n\n\n\n

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

Relying on the Branded business<\/strong><\/p>\n\n\n\n

We expect Century Pacific Food Inc. (CNPF) to perform better in the 2nd half (2H) 2023, driven by the Branded business\u2019s value for money and staple products as consumers continue to feel the impact of high inflation from the previous quarters. In the 2nd quarter (2Q) 2023, margins are only 10bps lower y\/y to 24.4% signalling that higher-priced carryover from last year is dwindling down. In accordance to this, we expect margins to recover in 2H 2023 and boost profitability. <\/p>\n\n\n\n

Earnings recap<\/strong><\/p>\n\n\n\n

CNPF posted a 10% growth in its 2Q 2023 net income to Php1.7 billion, which brought its 1H 2023 net income growth of 8% y\/y to Php3.2 billion. 1H 2023 consolidated revenues ended 8% higher to Php33.4 billion, underpinned by an 11% growth in the Branded business although partially offset by the 7% decline in the OEM exports. <\/p>\n\n\n\n

Its 1st half (1H) 2023 gross profit grew mildly at 3% to Php7.8 billion on account of 110bps margin contraction to 24.0% due to higher-priced carry-on inventories from last year. EBITDA and operating income both tracked 10% higher to Php4.9 billion and Php4.0 billion, respectively, as cost optimization initiatives offset higher input cost.<\/p>\n\n\n\n

<\/div>\n\n\n\n

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