Poulina Group (PGH TU) Thailand
Consumer Discretionary
PGH’s share price has been in a downward spiral since Apr 21, losing >40%. However, its financial performance has been solid. FY23 revenues increased 6% to TND4.07bn, boosted by a dynamic local market in Q4, while the core group businesses - Poultry and Food - saw revenues up 12% and 8%, respectively. PGH boasts a strong balance sheet structure despite its high gearing and the company's 2023 ROCE of 8.9% was respectable. The group will do better in terms of return on assets when the economy picks up again, but there is significant room for upside (60% discount to NAV) even if the household consumption recovery expected in 2024 is pushed back again. TP TND14.2 (95% upside).
Edition: 180
- 23 February, 2024