CP Pokphand 0043

[winston]

not vested

C.P. POKPHAND (00043.HK) net profit grows 37.7% in Jan-Mar
2014/05/15

C.P. POKPHAND (00043.HK) 0.000 (0.000%) Short selling $39.06K; Ratio 0.415% reported revenue had climbed 5.5% yearly to USD1.245 billion for the three months ended 31 March.

Net profit increased 37.7% to USD41.41 million.


Source: AAStocks Financial News

[winston]

not vested

Avoiding Hong Kong exposure altogether is another way to buttress the portfolio against weak economic growth.

Hong Kong-based CP Pokphand ( 43.HK ) is among the lineup of companies that are listed in Hong Kong but earn the bulk of revenues elsewhere.

A subsidiary of Thai conglomerate Charoen Pokphand Group, the animal feed maker earns 62% of revenues from mainland China and 35% from Vietnam.

Last year was tough for CP Pokphand as a weak Chinese yuan and Vietnamese dong, as well as a cull of swine numbers in China due to falling prices, weighed on revenues. However, lower raw material costs helped boost margins.

CP Pokphand’s China business could benefit as surging pork prices encourage farmers to expand their drift of young pigs, while the stock is also a play on rising consumption in Vietnam.

JPMorgan analyst Leon Chik expects the company’s expansion into the more profitable food processing business to further lift margins – not to mention demand for the frozen dumplings and buns it sells in Hong Kong supermarkets could also rise in a recession.

Chik has an overweight rating on CP Pokphand with an HKD1.2 a share target price and points out the 5% dividend on the stock is nearly double that on other small- and mid-caps.

Currently at around HKD0.80 a share, CP Pokphand is down 27% over the past year and trades at 10 times forward earnings.

Source: Barron's