{"id":327546,"date":"2024-04-17T22:07:48","date_gmt":"2024-04-17T14:07:48","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=327546"},"modified":"2024-04-17T22:07:49","modified_gmt":"2024-04-17T14:07:49","slug":"stock-in-focus-century-pacific-foods-inc-cnpf-17-apr-2024-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-century-pacific-foods-inc-cnpf-17-apr-2024-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Century Pacific Foods, Inc. (CNPF) – 17 Apr 2024 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>17 Apr 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 41.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We are upgrading our rating to BUY with a Target Price (TP) of P41.00 as we expect CNPF to see topline improve on favorable tuna prices, while also sustaining double-
digit growth on its branded business. Our TP provides an upside of +12.18% 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) recorded an increase of +21.99% year-on-year (y\/y) to P947 million for its 4Q 2023 bottomline, while 2023 rose by +11.6% y\/y to P5.58 billion. Its 2023 figures came in line with our 2023 estimates at 101.8%.<\/p>\n\n\n\n

Revenues saw a growth of +8.94% y\/y to P16.67 billion in 4Q 2023 and rose by +7.81% y\/y to P67.1 billion. The growth in topline for 4Q 2023 came from a sharp rise in the OEM segment as prices saw favorable commodity prices, while also
coming from a low base affected by supply chain bottlenecks. Topline growth
has been mostly attributed to price increases as CNPF implemented price increases in the mid-high single digits, while volume grew in the mid-low single digits.<\/p>\n\n\n\n

OEM grew by +18% y\/y to P3.0 billion, while Branded grew +7% y\/y to P13.6 billion.
For 2023, OEM declined by -4% y\/y to P11.9 billion as it faced difficulties for the first nine months of the year, attributed to high skipjack tuna prices. Tuna saw its price drop substantially beginning in late September, falling below 2022 levels in November. We forecast OEM to continue recording growth as tuna prices have largely remained stable at low levels as of writing.<\/p>\n\n\n\n

Management expects branded to register a low double-digit growth for 1Q 2024, through higher volume and less on price increases. Capex is set at 4.5 billion for 2024, of which half will be used for capacity investments on Coconut for Vita
Coco, while a third will be used for the expansion of plants.<\/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>