Charoen Pokphand Foods Public Company Limited is the leading agro-industrial and food conglomerate in

the Asia Pacific region. The Company operates in both the livestock (swine, broilers, layers, and ducks) and
aquaculture (shrimp and fish) businesses. The Company has its manufacturing plants situated in all regions
of Thailand.

The Company is a leader in feed production and distribution in Thailand with its main products including
swine feed, chicken feed, duck feed, shrimp feed and fish feed, in form of concentrated feed and
completed feed in either powder or pellet. Key products in this business are categorized into 2 groups. The
first group is live animal and products from live animal, such as fattening swine, broiler, duck, chicken egg
and duck egg, which are sold domestically. The second group is basic processed meat, such as fattening
swine, broiler and duck from farms to processing plants for cutting and trimming into pieces as per
consumers’ demand before packaging and freezing or chilling for distribution under cp brand to retailers,
whole sellers and food services. The Company has added the value of basic processed products from
animal farms by processing them into cooked food products and ready-to-eat food products, then, chilling
or freezing and distributing the products under customers’ brands, the Company’s brand and under cp
brand .

Business landscape
In processing and manufacturing of cooked food products, the company is strongly committed to meet
consumer’s demand and satisfaction by adding more value to create ready meal products in several
menus to serve customer specifications and to bring more opportunity to purchase. With vision to be
“Kitchen of the World”, the company is committed to fulfill the longing of quality food products that are
nutritious, hygienic and with food safety integrity from consumers whose satisfaction and habit have
change from time to time.
Activity ratio

ดี Inventory Turnover (Times) 7.98

ดี Avg. Inventory Period (Days) 45.75
ไม่ดี A/R Turnover (Times) 17.6
ไม่ดี Account receivable days /Collection Period (Days) 20.74
ไม่ดTี otal Asset Turnover 0.89

Activity ratio as indicated by the account receivable days and turnover is not quite good comparing to the
previous year since the company required more days to collect the cash. The decline of asset turnover
implies that the company is inefficient to use the asset to generate revenue. However, the company shorten
the times to turn asset into sales.

liquidity ratio

current ratio 1.20 higher

quick ratio 0.85 lower 0.96
In liquidity ratio, the current ratio is greater than 1 interpreting that the company has the ability to pay the
obligations with its asset. However, the quick ratio which didn’t take the illiquid asset into account and is
less than 1 implying that the company don’t have enough liquid asset to pay back the liabilities and should
be treated with caution. In this case, quick ratio is lower than current ratio meaning that the company
highly dependent on inventory.

Leverage / solvency ratio

D/E debt to equity 2.6 เพิม ้

่ ขึน
Total Debt ratio 64.33%ลดลง 64.85
่ น้
Total equity multiplier 3.01เพิมขึ
Time interest earned ratio 3.87ลดลง
หา cash convergeได ้ 49.81
In the leverage ratio, the debt to equity ratio indicate that a larger
portion of asset financing is attributed to debt than equity. The debt to
equity increases when compared with the previous year. The slightly
lower total equity is more preferable as the company depend on less
debt which carries less risk. However, the decrease in the time interest
earned ratio shows that the company inability to pay the interest
expense.

Profitability ratio

Profit margin1.03%
ROA 8.16%
ROE 11.96%เพิม ้
่ ขึน
For profitability ratio, the overall efficiency and performance of the company is quite good. The company
has better ability to generate profit relative to its total assets as ROA is slightly higher. The ROE significantly
increases indicating that the companies profit is generated by the money that shareholders have invested.

Market value ratios

P/E 15.07

P/BV1.77

For Market value ratios as indicates by the price to earnings and price to book values. The higher price to
earnings means that the investors are expecting higher earnings growth in the future. The ratio measures
the company’s current share price relative to its price- share earnings. The price book value increase can
be interpreting as stock is overvalue and the buyer is paying too much for what would be left if the
company went bankrupt.

Market Cap218,738.11

EPS 1.75

SWOT

Strengths

1. Pioneer and leader in the production of various forms of livestock feed such as concentrate, powder and
pellet

2. Production processes are computer controlled to ensure consistency in quality and specified standard

3. Leader in the research and development field of natural genetic selection. The objective is to produce
quality breed that is healthy, sturdy and suitable to the farming condition of Thailand

4. The Company is the first company outside the European Union to be awarded with the Animal Welfare
Standard, the most stringent standard to date for export chicken

5. One of the strongest players in Thailand with a strong brand presence

Weaknesses

1.Prices of products fluctuate depending on the supply and demand

2.Limited global presence compared to market leaders is a concern

3.Disease outbreaks have caused panic and affected people’s confidence in meat consumption, resulting in
reduced volumes of meat consumption
Opportunities

1.The Company is investing to expand distribution channels through its own outlets and retail shops, selling
chilled and frozen ready-to-eat
products under the Five Star and CP brands

2.In the trading of processed food, there are good prospects in India, China and Indonesia

3.Implementing an eco-friendly policy would help reduce waste disposal expenses, save production costs
from the reuse of recycled parts, increase earnings from the higher selling prices that consumers are willing
to pay for such products.
Threats

1.Impacts from the increasing economic uncertainty in the United States and the European Union, which
may cause the global economy to slow down at a higher rate than expected

2.Changes in the population structure leading to fewer workers being available for production line
adjustments

3.Unpredictable Weather and Environmental Conditions