GFPT-CPF, Skateboarding Chicken!
It is the time to ask a question: which share is the best choice to buy between GFPT and CPF?
Two of the listed companies who focused in products from chicken namely GFBT Public Company Limited (GFBT) and Charoen Pokphand Foods Public Limited Company (CPF), were not a disappointment to investors and the net profit of the 1Q19 that had just announced was so excellent that made shareholders smile ear to ear.
Starting with a little Chick stock, GFPT, reporting a net profit of 1Q19 at THB 227.86 million increased 56.16% YoY, when compared to the net profit in the amount of THB 145.91 million in the first quarter of 2018. The consolidated revenue from sales for 1Q2019 were THB 3,966.01 million, increased by THB 232.91 million or 6.24% from 1Q2018 at the amount of THB 3,733.10 million.
The main revenue of GFPT is chicken processing business, in 1Q2019 represented 41.62% of revenue from sales, amounting THB 1,650.69 million, increased by THB 248.80 million or 17.75% from 1Q2018. Due to the increase in export volume of fresh chicken meat. The revenue from feed business represented 19.30% of revenue from sales, amounting THB 765.32 million, increased by THB 59.11 million or 8.37% from 1Q2018.
Moreover, in the first quarter of 2019 the participating profit from associates was THB 21.74 million, increased by THB 56.48 million or 162.57% when compared to 1Q2018.
If GFPT could presents an excellent revenue the same as 1Q2019 in every quarter, the investor would definitely award a Golden Chick position to GFPT.
As for the “hen”, CPF, the company also did a good performance no less than GFPT.
In the first quarter of 2019, CPF’s net profit was THB 4,279 million, increased by 40% from the same period of the previous year THB 3,049 million. Additionally, the revenue from sales in the first quarter of 2019 was THB 125,286 million, increased by 4% from the same period of the previous year of THB 120,510 million. The major increase come from the operating results of swine businesses in Thailand, Vietnam and Cambodia has improved due to the fact that the swine price, which decreased significantly in the same period of the previous year, has returned to normal, as well as an efficient production management. The gross profit margin increased 14% from the same period of the previous year of 9%.
Hopefully, this “hen” could produce Golden eggs as this in every quarter to delight its 62,524 shareholders.
However, the current situation in the market is not as promising as it should be, which makes the share price of GFPT and CPF fail to respond to the rising of their profit.
What is a pity!
It is the time to ask a question: which share is the best choice to buy between GFPT and CPF?