{"id":325813,"date":"2023-11-23T13:43:41","date_gmt":"2023-11-23T05:43:41","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=325813"},"modified":"2023-11-23T13:43:43","modified_gmt":"2023-11-23T05:43:43","slug":"stock-in-focus-century-pacific-foods-inc-cnpf-23-nov-2023-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-century-pacific-foods-inc-cnpf-23-nov-2023-by-ap-securities\/","title":{"rendered":"Stock in Focus: Century Pacific Foods, Inc. (CNPF) – 23 Nov 2023 by AP 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>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>23 Nov 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 31.75<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Though we remain optimistic on CNPF\u2019s future prospects, we note that valuations are currently looking expensive. The company\u2019s PER of 17.1x is currently higher than the mean 15.0x of its local comparables. Additionally, CNPF\u2019s estimated 2024 EPS growth is also forecasted to be the slowest in its local peer group at only 15.2%, thus leaving it with the most expensive PEG ratio as well at 1.13x.<\/p>\n\n\n\n

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

Trade benefits to persist<\/h3>\n\n\n\n

According to the EU ambassador to the Philippines Luc Veron, the PH will remain a beneficiary of the GSP+ which grants trade privileges to participating low and middle-income countries. Under the arrangement, the PH is allowed to export up to 6,274 locally made products to the EU free of any duties, in exchange for upholding commitments to 27 conventions ranging from human rights, labor, and climate action. <\/p>\n\n\n\n

As such, the four-year extension that has been granted to the PH will be integral in continuing to facilitate trade activity. Tuna exporters in particular will benefit from the extension, given the high tariffs of 20 to 30% that the EU usually imposes on its tuna imports, according to DTI secretary Alfredo Pascual.<\/p>\n\n\n\n

Good catch for CNPF<\/h3>\n\n\n\n

With tuna exports to the EU taking center stage, CNPF is a name that immediately comes to mind. Though known primarily for its local canned fish and meat brands, the company is also a heavy exporter of tuna and coconut products to the EU and other foreign markets under its OEM segment. Despite not being its biggest revenue generator, the segment\u2019s share in the sales mix is still significant at 18.2%. <\/p>\n\n\n\n

Lately, OEM has seen some pressure caused by falling demand given the high price of skipjack tuna in international markets. The extension of GSP+ is therefore a welcome development for the company as it staves off the additional costs that would have to be either passed on to the customers, or absorbed by CNPF. Additionally, we note that skipjack prices have also begun to fall as well, registering four straight months of MoM decline. Given these factors, we are optimistic that CNPF\u2019s OEM segment will be able to begin recovering lost ground in the coming quarters.<\/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>