{"id":325706,"date":"2023-11-15T21:55:15","date_gmt":"2023-11-15T13:55:15","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=325706"},"modified":"2023-11-15T21:55:16","modified_gmt":"2023-11-15T13:55:16","slug":"stock-in-focus-century-pacific-foods-inc-cnpf-15-nov-2023-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-century-pacific-foods-inc-cnpf-15-nov-2023-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Century Pacific Foods, Inc. (CNPF) – 15 Nov 2023 by Regina Capital Development Corp."},"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>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>15 Nov 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 31.50<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We reiterate our HOLD rating with a Target Price of P31.50 per share. This is based on 17.7x Price-Earnings (P\/E) ratio on 2024 Earnings per Share (EPS). Our Target Price provides an upside of +8.62% based on the last traded price.<\/p>\n\n\n\n

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

Century Pacific Food, Inc. (CNPF) posted a rise of +13.07% year-on-year (y\/y) to P1.43 billion in 3Q 2023. This figure is in line with our estimates at 84.5% of our 2023 forecast.<\/p>\n\n\n\n

Revenues for the quarter grew by +7.34% to P17.04 billion, while 9-month (9M) 2023 grew by 7.45% year-om-year (y\/y) to P50.45 billion. In 3Q 2023, the branded business grew by +13.9% y\/y to P13.9 billion while OEM declines by -15% y\/y to P3.1 billion in 3Q 2023 to P8.9bn due to a high base. <\/p>\n\n\n\n

In terms of revenue contribution, Branded is now at 82%, an increase of 3pps y\/y in 9M23. Market shares under canned tuna decline by 70bps. This is due to price increases under the fresca brand which is targeted towards more on consumers looking at affordability. For sardines, supply constraints have been affecting the sardine business as the company was unable to secure supplies early in the year.<\/p>\n\n\n\n

Consumer behavior has been the same for previous quarters where it can be observed that there is a trend in downtrading. To accommodate this trend, the company has been introducing smaller pack sizes to meet price points that consumers would be willing to spend on. The company sees fastest growth under the value side.<\/p>\n\n\n\n

No plans for price reductions in the horizon. Management is targeting a growth in the high single digits in topline and mid to high single digits for 2023. For 2024, CNPF is looking at growing its topline and bottomline in the low to mid-teens. Demand is expected to pick up as inflation starts to slow down.<\/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>