Krungsri Securities Public Company Limited said CPALL reported 2Q26 core profit of 7.40 billion baht, up 6% from a year earlier but down 17% from the previous quarter, broadly in line with analyst and market expectations. Including a foreign exchange gain of 113 million baht, net profit was 7.51 billion baht, up 11% from a year earlier but down 18% from the previous quarter on seasonal factors. Year-on-year growth came from the convenience store business and related businesses, which accounted for 85% of profit, with profit rising 18% on a 0.8% increase in same-store sales. Store count expanded to 16,284, up 689 stores from a year earlier and 200 stores from the previous quarter. Selling and administrative expenses as a percentage of sales fell 20 basis points from a year earlier, and sales support income grew well, helping to offset CPAXT profit, which accounted for 15% of profit and fell 18% from a year earlier due to weaker same-store sales, with wholesale down 0.9% and retail down 3.9%. Gross margin fell 20 basis points from a year earlier, while expenses rose to support online channels, new stores, and Happitat. For 3Q26 core profit momentum, growth from a year earlier is still expected because convenience store same-store sales are still growing 1%, and energy cost pressure is expected to ease, so convenience store gross margin should expand from a year earlier. Meanwhile, core profit is expected to soften from the previous quarter on rainy-season seasonality. Krungsri Securities maintains a buy rating with a 2027 target price of 66 baht, viewing CPALL as a defensive growth stock driven by new product strategies and improving 7-Eleven margins, allowing profit to grow even while purchasing power recovers slowly. Core profit for 2026 to 2027 is forecast at 30.5 billion baht and 32.7 billion baht, growing 8% and 7% from a year earlier respectively. The stock trades at a one-year forward price-to-earnings ratio of only 13.6 times, about one standard deviation below its three-year average, with upside of around 35%.
CP ALL Public Company LimitedCore profit up 6% YoY, in line with expectations; buy rating maintained with TP 66 baht.
CP Axtra Public Company LimitedCPAXT profit fell 18% YoY due to weaker same-store sales (wholesale -0.9%, retail -3.9%).
