2023-04-28 14:19:16
A lot of decrease from sales, margin to net profit.
In summary, there are three issues that are problematic:
1. Main customers in the US and Europe market, stock a lot of products (cat food) since last year. slow down orders ITC has 3 main customers, accounting for 43% of total sales.
>> The first item affects the full sales, leaving only 3,600 million baht from the peak period up to 6,000 million baht.
2. The selling price of premium products decreased. Because customers adjust the mix of red meat products, packaging, and focus on selling best-selling products instead.
>> This affects GPM to 17.4% from the peak of 28% and is it worrying that it’s because the economy is bad? Customers therefore change plans to reduce costs.
3. Cost of chicken, tuna, energy, additional packaging This issue further aggravated the margins.
>> The worrying thing is that the price of tuna is almost $2,000 now, which means future costs are not cheap.
But it’s not that there are only disadvantages. Let’s take a closer look at some advantages.
1. Dog Food Numbers Still Growing Well
2. Sales to Japan continue to grow well
3. Enter the Chinese market with partner Nanjing Jia Bei Pet Care Products.
in terms of stock price Today, it has come down hard at 22.50 baht, almost ATL last time, P/E 16x.
There is an Analyst Meeting tomorrow. The question I’d like to know is, has the customer’s stock been drained? And in the past, how much is the Pent Up Demand? Has normal orders started coming back in yet? And how much should it be?
And it’s not just a sales issue. But there is a matter of cost that needs to be managed, both product mix, electricity cost, tuna, as well as increasing the cap by almost 20%, will it be worth the depreciation or not? If the order doesn’t come
All in all, that’s what we need to find answers to. and assess whether How much is it worth with this price? Has the situation passed the bottom? We look at this stock, what kind of stock? Try answering various questions, because the market is always looking ahead.
This article was originally published on Stock Vitamins – stock vitamins
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