If you know anything about Thailand’s consumer market, then you must have heard about Charoen Pokphand Group. The Charoen Pokphand Group is one of the largest conglomerate in Thailand and focused mainly in the retail and food industry in the region. Today, we take a look at one of its largest listed entities in Thailand; Charoen Pokphand Foods Public Co. Ltd (SET:CPF)
The Kitchen of the World
What a vision. That is the vision of Charoen Pokphand Foods Public Co. Ltd. And more important, it is not just an empty statement. The company, together with its investment in 3 other listed companies, is the one of the world’s largest animal feed manufacturers. It is also among the top swine and shrimp producers in the world. Its three other listed investments are
- CP Pokphand Co. Ltd (43:HK)
- Charoen Pokphand Enterprise (Taiwan) (1215:TT)
- CP ALL Public Co. Ltd – Read more about CP ALL here.
The company has a market capitalisation of around THB 193.6 billion and having sales of around THB 390 billion in FY2013. The company is an integrated food company starting from animal feed production to breeding, farming, processing. The company pack and export frozen food in its basic form. The company also has additional packaged food with their own CP branding, distributed throughout major retailers globally. Just take a walk around your local supermarket, the chances are that you will bump into one of their products.
According to its FY2013, 41% of its sales are done through its Thailand subsidiary but only 85% of it is for domestic market while 15% of its sales are done through export. On top of that, the company obtained 59% of its sales internationally, through many subsidiaries and associates investment.
Sales has been impressive. In FY2009, the company recorded a revenue of THB 166.6 billion and grew it to THB 390.9 billion by FY2013. However, due to many incidents throughout the past few years such as the bird flu, swine flu and other breakout, the company earning has not been growing for the past few years. This shows the volatility of its business.
Value In Action
Although the company has not been able to grow its earnings over the past few years, it has successfully increase its scale and reach of its products. If the future of the industry is stable, the company might be very well position to realized its effort for the past few years.Join us on Facebook for more exciting updates and discussion about value investing. Submit your email address for important market updates and FREE case studies!We will only provide you with information relevant to value investing. You can unsubscribe at any time. Your contact details will be safeguarded. The information provided is for general information purposes only and is not intended to be any investment or financial advice. All views and opinions articulated in the article were expressed in Stanley Lim’s personal capacity and does not in any way represent those of his employer and other related entities. Stanley Lim does not own any companies mentioned above