Bualuang Securities says retail margins are expanding, supporting profit growth through 2027

Bualuang Securities··TH·Read original
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Summary · why it matters

The Research team at Bualuang Securities says the retail sector still has growth drivers from structural margin expansion, which is expected to be a key driver of profits through 2027, supported by procurement efficiency, inventory management, and an improving sales mix. Core profit in the third quarter of 2026 is expected to rise 9% year on year even as same-store sales hold steady, with margin expansion helping profit grow faster than sales on a continuing basis, and improved profitability also stems from more efficient expense management. The three standout stocks, CPALL, CRC, and CPN, stand out for both gross margin expansion and an improving ratio of selling and administrative expenses to sales. CPALL trades at a 2027 PER of just 12 times, while CRC benefits directly from tourist spending, and CPN will gain additional revenue from existing shopping malls from tourist spending. The Research team assigns an OVERWEIGHT rating to the retail sector, overweighting essential and discretionary retail and underweighting home improvement and decoration retail, given limited profit growth opportunities in 2027 after the temporary boost from margin expansion begins to fade.

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Digital Finance & Tokenization▲ · 1 stocks
CP ALL Public Company Limited
CPALL
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Bualuang highlights CPALL's gross margin expansion, improving SG&A-to-sales ratio, and cheap 2027 PER of 12x as a standout retail pick.

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Consumer Discretionary▲ · 1 stocks
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