TFG Stock Recommendation: A Buy Opportunity with Strong Growth Prospects

Finansia Syrus Securities’ Stock Dimension has recommended a “Buy” rating for TFG, with a target price of 5.90 baht. This recommendation is based on the expectation of a strong Q3/67 profit of 1.28 billion baht, representing a 17% quarter-over-quarter growth and a turnaround from last year’s loss.

The primary driver of this growth is the sustained high price of meat, coupled with low raw material prices in the second half of 2024. This is expected to drive the Gross Margin to 16% in the current quarter. Additionally, the retail business is poised to continue its growth trajectory, with plans to open 450 new branches by the end of the year, bringing the total to 814 branches.

This expansion is expected to reduce the company’s dependence on animal meat prices and contribute to a more stable operating performance. As a result, the expected normal profit for 2024 is 3.06 billion baht. The current stock price offers an attractive P/E ratio of 9 and a dividend yield of approximately 5% per annum.

Key Highlights:

• Target price: 5.90 baht
• Expected Q3/67 profit: 1.28 billion baht
• Gross Margin expected to rise to 16%
• Retail business expansion: 450 new branches by year-end
• Expected normal profit for 2024: 3.06 billion baht
• P/E ratio: 9
• Dividend yield: approximately 5% per annum