DAVY VIEW

The African Swine Fever (ASF) situation in China marks a critical juncture for the global protein market. The magnitude of the pork volume shortfall in China is offering substantial export opportunities for vertically integrated producers. Cranswick is well positioned to capitalise. Rebuilding China’s pork industry could take up to five years. Operating momentum should underpin the equity, with continued growth in exports, pig price inflation, new business wins, recent investments and the commissioning of the new poultry site. We note upside risk to our full-year operating profit forecast and reiterate our ‘Outperform’ rating.