cnpf report 11.59.23 am
TRANSCRIPT
Century Pacific Inc.
Century Pacific Food Inc.
BuyShareprice:P16.98TargetPrice:P20.65
Upside:21.61%
• StrongdemandforBrandedProducts
• CatalystinCoconut
• FavorableMacroeconomicstowardsmoreconsumpJon
MarketShare
Source: Bloomberg, Euromonitor, CLSA
Source: Bloomberg, Euromonitor, CLSA Source: Bloomberg, Euromonitor, CLSA
Source: Bloomberg, Euromonitor, CLSA
Source: CNPF Annual Stockholders Meeting President’s Report
Source: CNPF Annual Stockholders Meeting President’s Report
Source: CNPF Annual Stockholders Meeting President’s Report
Source: CNPF Annual Stockholders Meeting President’s Report
DistribuJonandProducJon
• 652kpointsofsale,270koutlets
• Tuna&Coconut:GenSan
• Meat:Laguna,24kcases
• Dairy:MetroManila,11kcases
• Tin-Can(P562m)&ColdstorageFacility(P450m)
Source: CNPF Annual Stockholders Meeting President’s Report
WorkingCapital
Notes:
Source: Bloomberg, Euromonitor,
Gearing
FY15:CapexbudgetatP820m(P450mforcoldstorage)FY16:CapexbudgetatP945m(P310mforcoconutproducJon)
Source: Bloomberg, Euromonitor, Source: Bloomberg, Euromonitor,
LocalPeers
Source: Bloomberg, Euromonitor, Source: Bloomberg, Euromonitor,
Source: Bloomberg, Euromonitor, Source: Bloomberg, Euromonitor,
• Keydifferences:ProductPor\olioandSalesMix
• Be]erliquidityandprofitability
ForeignPeers
Source: Bloomberg, Euromonitor,
Source: Bloomberg, Euromonitor,
Source: Bloomberg, Euromonitor,
• CPAVIgenerates8%ofrevenue
• Rollingoutproducts:70%Coconutwater,30%forVCO
Export
Macroeconomic Factors
1)EscalaJonofBusinessProcessOutsourcing
• AimingtogenerateP25bin2016
• Addingworkers:335,000workers
• 1/3ofrevenuesallotstopayrolls
MacroeconomicFactors
Source: Bloomberg, Euromonitor,
Source: Bloomberg, Euromonitor,
Macroeconomic Factors
2)Increasingremi]ances
• Remi]ancesfor1Q16upby4.3%to7.2b
• MoreconsumpJon
MacroeconomicFactors
Source: Bloomberg, Euromonitor, Source: Bloomberg, Euromonitor,
Source: Bloomberg, Euromonitor,
Macroeconomic FactorsMacroeconomicFactors
Source: Bloomberg, Euromonitor,
Commodity Prices
• Marketshareforpowdered:BirchTreearound2%,BearBrand36%
• PlusonemarkeJngstrategyonlygoodforshort-term
• Needanicheproduct
ExecuJonRisk
Drivers
1)BrandedBusiness
2)CatalystinCoconut
3)IncreaseinConsumpJon
