January 25, 2013 / 6:07 AM / 5 years ago

STOCKS NEWS THAILAND-KGI starts CP Foods with 'neutral'

KGI Securities initiated coverage of Charoen Pokphand Foods Pcl with a ‘neutral’ rating, saying the integrated agro-industrial food firm would benefit from rising food demand, but was cautious of volatility in farm and raw material prices.

The broker set a price target of 36 baht.

At the midsession break of 0530 GMT, shares in Charoen Pokphand Foods were down 0.7 percent at 34 baht. The broader SET index was up 0.37 percent.

“CPF is positioned to benefit from rising food demand spurred by rising per capita consumption and modest population growth,” KGI said in a report.

“We advise investors to wait for better signs of recovery in the shrimp business, farm prices and lower raw material costs, before taking a position in CPF,” it said.

1256 (0556 GMT)

(Reporting by Pairat Temphairojana in Bangkok; Editing by Prateek Chatterjee)

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12:14 STOCKS NEWS THAILAND-Cal-Comp Electronics jumps on earnings hope

Shares in Cal-Comp Electronics Pcl jumped 5 percent to 3.78 baht, climbing at one point to 3.86 baht, on expectations the company would post strong earnings growth this year along with rising demand for consumer electronics.

Maybank Kim Eng Securities projected a 156.3 percent growth in net profit this year to 2.06 billion baht ($69.16 million). Maybank upgraded its rating on the electronics sector to ‘overweight’.

“The industry is now moving on an uptrend after increasing wages in China (that) has led many producers to move operational bases back to Thailand, which should be a main Asian hub in the future,” the broker said in a report.

Maybank said Cal-Comp was its top pick.

“We expect electronics demand to expand once again in 2013, driven by a recovering world economy with the advent of new technology,” it said.

($1 = 29.785 baht)

1155 (0455 GMT)

Reporting by Pairat Temphairojana in Bangkok; Editing by Anand Basu

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