{"id":333137,"date":"2025-07-11T00:26:28","date_gmt":"2025-07-10T16:26:28","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=333137"},"modified":"2025-07-11T00:26:30","modified_gmt":"2025-07-10T16:26:30","slug":"stock-in-focus-century-pacific-foods-inc-cnpf-11-july-2025-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-century-pacific-foods-inc-cnpf-11-july-2025-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Century Pacific Foods, Inc. (CNPF) – 11 July 2025 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>11 July 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 45.60<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We retain a BUY rating with a lower Target Price of P45.60. This is grounded on CNPF\u2019s sustained double-digit growth amidst uncertainty on the global scene and increasing commodity prices that affected its OEM segment. On the local front, branded segment continues its wave as household consumption picks up on improving economic landscape. However, downside risk remains as potential challenges arising from trade war and tariff hikes, along with fluctuations on commodity prices may affect the company\u2019s margins. Whilst post-election spending period needs to be monitored if consumption trend will be sustained.<\/p>\n\n\n\n

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

Century Pacific Food, Inc. (CNPF) posted strong earnings in 1Q 2025, with revenues climbing 9.8% year-on-year (y\/y) to P19.9 billion from P18.2 billion in 1Q 2024. This growth was mainly driven by the continued momentum in its branded segment, which captured strong demand across core categories. As a result, consolidated Net Income after Tax (NIAT) rose 11% to P1.9 billion from P1.7 billion a year ago, supported by operating leverage and cost efficiencies. Moreover, a favorable macro environment marked by easing inflation and improved consumer confidence contributed to higher consumer spending, further lifting earnings.<\/p>\n\n\n\n

Meanwhile, CNPF\u2019s segmental performance remained heavily anchored on its Branded Food Segment, which accounted for 81% of total revenues during the quarter. This segment grew 13% y\/y to P16.1 billion, with all key categories such as marine, meat, milk, and other emerging products showing growth. In contrast, the OEM export segment contributed 19% of total revenues but dipped 2% y\/y to P3.8 billion due to a high 2024 base and weaker commodity cycles, although it improved 10% sequentially. Additionally, CNPF continued to strengthen its international footprint, exporting branded products to 82 countries and gaining shelf presence in major global retailers like Walmart, Carrefour, and Woolworths.<\/p>\n\n\n\n

Looking at the broader economic backdrop, consumption showed a notable rebound with household final consumption expenditure rising 5.3%, even as GDP growth came in at 5.4%. Easing inflation, with May CPI down to 1.3%, supported real incomes and spending across essential and discretionary goods. Furthermore, the BSP\u2019s second consecutive 25-basis-point rate cut aimed to reinforce domestic demand amid lingering global uncertainties.<\/p>\n\n\n\n

While near-term consumer sentiment dipped, the 12-month outlook stayed relatively firm, providing a supportive environment for CNPF\u2019s growth prospects. However, risks tied to global trade issues and commodity price swings remain key factors to watch, especially for the OEM segment.<\/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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