Charoen Pokphand Foods (CPF) has lowered its revenue forecast for the
year, from Bt130 billion to between Bt125 billion and Bt127 billion, due to the
negative impact of the strengthening of the baht against the US dollar.
President Adirek Sripratak said recently that apart from the foreign-currency
effects, the company also faced sideways prices in the domestic feed-meal
market. However, the company expects its revenues to grow 10% next year to Bt140
billion. Adirek said increases in future revenues were expected from its
investments in countries like Turkey, India, Malaysia and England.
CPF's total investment budget
next year of Bt4 billion will be divided equally between domestic and foreign
projects, he said. Among its foreign investments, the company plans to build a
feed-meal plant and swine and chicken farms in Russia and aquaculture farming
projects in Laos and China. Those projects are expected to be completed next
Ayudhya Securities' Research Department does not expect CPF's
lowered forecast to have much of an effect on the company's share price.
However, CPF's investments abroad will have to be monitored, because except for
the Russian projects, there is no clear investment plan.
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