The sentiment toward the shares of Century Pacific Food Inc. would be dependent on the results of its third-quarter and nine-month earnings report, an analyst said.
“With the release of its earnings within this month, this may dictate the sentiment depending on the results,” Diversified Securities Inc. trader Aniceto Pangan said in a text message.
The shares of the listed food-manufacturing firm closed among the top decliners last week as it fell 98 centavos or 5.94 percent to P15.52 apiece amid the 1.19-percent climb of the main index on Friday.
Pangan said the price of Century Pacific Food corrected during the previous trading week, while it was on consolidation for the month of October, as its shares slumped by 9.56-percent on a monthly basis.
“For October, it was on consolidation at a high of P18 per share to a low of P16.70 per share until the last two consecutive trading days, as local market corrected in line with the global market,” he noted.
Pangan explained that Century Pacific Food was a beneficiary of the heightened demand during the second quarter amid the implementation of the strict enhanced community quarantine (ECQ).
“Century Pacific Food was a beneficiary of the heightened demand during the second quarter as their staple canned products, marine and meat were the main focus of the government in their food subsidy program during ECQ, while milk serves for health and wellness benefits,” Pangan said.
He added the demand for food began normalizing along with the easement of the quarantine restrictions, which he said might push Century Pacific’s growth to consolidate to the normal state.
Century Pacific Food recorded a 31-percent surge in its net income during the first half of the year to P2.24 billion from P1.7 billion in the same period last year on the back of the growth of its consolidated revenues.
The conglomerate’s revenues soared by 28-percent year-on-year to P25.1 billion from P19.6 billion as its shelf-stable products saw a heightened demand in the months of April, May and June.
Its core branded products of marine and meat and milk business also exhibited strong results during the period.
Meanwhile, Pangan sees the stock undergoing a price correction as it has just broken out of its consolidation phase.
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