1. Century Pacific Inc.
Century Pacific Food Inc.
Buy
Share price: P16.98
Target Price: P20.65
Upside: 21.61%

2. • Strong demand for Branded Products
• Catalyst in Coconut
• Favorable Macroeconomics towards
more consumpJon

3. Market Share
Sourc
Source: Bloomberg, Euromonitor, CLSA Source: Bloomberg, Euromonitor, CLSA
Source: Bloomberg, Euromonitor, CLSA

4. Source: CNPF Annual Stockholders Meeting President’s Report
Source: CNPF Annual Stockholders Meeting President’s Report
Source: CNPF Annual Stockholders Meeting President’s Report
Source: CNPF Annual Stockholders Meeting President’s Report

5. DistribuJon and ProducJon
• 652k points of sale, 270k outlets
• Tuna & Coconut: Gen San
• Meat: Laguna, 24k cases
• Dairy: Metro Manila, 11k cases
• Tin-Can (P562m) & Cold storage
Facility (P450m)
Source: CNPF Annual Stockholders Meeting President’s Report

6. Working Capital
Source: Bloomberg, Euromonitor,

7. Gearing
FY 15: Capex budget at P820m (P450m for cold storage)
FY 16: Capex budget at P945m (P310m for coconut producJon)
Source: Bloomberg, Euromonitor, Source: Bloomberg, Euromonitor,

8. Local Peers
Source: Bloomberg, Euromonitor, Source: Bloomberg, Euromonitor,
Source: Bloomberg, Euromonitor, Source: Bloomberg, Euromonitor,

9. • Key differences:
Product Porolio
and Sales Mix
• Be]er liquidity and
profitability
Foreign Peers
Source: Bloomberg, Euromonitor,
Source: Bloomberg, Euromonitor,
Source: Bloomberg, Euromonitor,

10. • CPAVI generates 8%
of revenue
• Rolling out products:
70% Coconut water,
30% for VCO
Export

11. Macroeconomic Factors
1) EscalaJon of Business
Process Outsourcing
• Aiming to generate P25b in
2016
• Adding workers: 335,000
workers
• 1/3 of revenues allots to
payrolls
Macroeconomic Factors
Source: Bloomberg, Euromonitor,
Source: Bloomberg, Euromonitor,

12. Macroeconomic Factors
2) Increasing remi]ances
• Remi]ances for 1Q16
up by 4.3% to 7.2b
• More consumpJon
Macroeconomic Factors
Source: Bloomberg, Euromonitor, Source: Bloomberg, Euromonitor,
Source: Bloomberg, Euromonitor,

13. Macroeconomic FactorsMacroeconomic Factors
Source: Bloomberg, Euromonitor,

14. Commodity Prices

15. • Market share for
powdered: Birch Tree
around 2%, Bear Brand 36%
• Plus one markeJng strategy
only good for short-term
• Need a niche product
ExecuJon Risk

16. Drivers
1) Branded Business
2) Catalyst in Coconut
3) Increase in ConsumpJon