Company Coverage
Central Pattana (CPN TB) 2Q26: Strong Growth Within Expectation
BUY (Maintained)
Current price:
Target price:
Upside:
Bt67.75
Bt80.00
18.52%
Analyst
Highlights
- CPN reported 2Q26 core profit of Bt4.65b (+19% yoy, -5% qoq), in line with our and consensus expectations.
- Rental and services revenue reached a record high while the hotel and residential businesses also recorded healthy growth.
- CPN’s earnings momentum should continue in 2H26. Maintain BUY with a target price of Bt80.00.
Analysis
- Results in line. Central Pattana (CPN) reported 2Q26 net profit of Bt4.75b (+10% yoy, -4% qoq) and core profit of Bt4.65b (+19% yoy, -5% qoq), in line with our and consensus expectations. The solid earnings growth was driven by strong operating performance across all business segments, with total revenue rising 8% yoy to Bt13.1b. Gross margin remained healthy at around 59.3%, while SG&A-to-revenue was broadly stable yoy. Interest expense declined yoy, supported by lower borrowing costs, while equity income also increased yoy, providing additional support to core profit. For 1H26, core profit reached around Bt9.6b, accounting for approximately 50% of our fullyear forecast.
- Rental and services revenue reached a record high, with revenue reaching a record Bt11.5b (+8% yoy,+1% qoq). Growth was supported by higher rental income from new and recently opened assets, including Central Park, Central Krabi and Central Khon Kaen, as well as positive rental growth from existing malls. Occupancy remained strong at around 91%, while rental rates and tenant sales continued to support revenue growth. The segment also benefitted from a favourable tenant mix and operating leverage, helping rental and services maintain a strong gross margin expansion of 120bp yoy despite the addition of new assets. CPN’s rental and services accounted for around 88% of total operating revenue in 2Q26.
- Hotel and residential businesses also recorded healthy growth. Hotel revenue increased 5% yoy, supported by higher room revenue and an
improvement in operating performance, with hotel occupancy at around 79%. The residential business delivered stronger growth, with revenue increasing 29% yoy, driven by higher transfers from new condominium and housing projects. Together, hotel and residential revenue contributed around 12% of total operating revenue.
- CPN’s earnings momentum is expected to continue in 2H26, supported by the ramp-up of newly opened assets and continued growth of existing
malls. Key catalysts include the continued ramp-up of Central Park and Central Krabi, as well as the upcoming opening of Central Northville and new hotel projects. Management targets 5-8% yoy growth in rental and service income in 2026, while occupancy is expected to remain at a healthy level. We also expect operating leverage from mature assets to partly offset the initial margin dilution from new projects. Overall, the strong 2Q26 rental performance, solid occupancy and expanding asset base should support continued earnings growth in 2H26.
Highlights
- CPN reported 2Q26 core profit of Bt4.65b (+19% yoy, -5% qoq), in line with our and consensus expectations.
- Rental and services revenue reached a record high while the hotel and residential businesses also recorded healthy growth.
- CPN’s earnings momentum should continue in 2H26. Maintain BUY with a target price of Bt80.00.
Analysis
- Results in line. Central Pattana (CPN) reported 2Q26 net profit of Bt4.75b (+10% yoy, -4% qoq) and core profit of Bt4.65b (+19% yoy, -5% qoq), in line with our and consensus expectations. The solid earnings growth was driven by strong operating performance across all business segments, with total revenue rising 8% yoy to Bt13.1b. Gross margin remained healthy at around 59.3%, while SG&A-to-revenue was broadly stable yoy. Interest expense declined yoy, supported by lower borrowing costs, while equity income also increased yoy, providing additional support to core profit. For 1H26, core profit reached around Bt9.6b, accounting for approximately 50% of our fullyear forecast.
- Rental and services revenue reached a record high, with revenue reaching a record Bt11.5b (+8% yoy,+1% qoq). Growth was supported by higher rental income from new and recently opened assets, including Central Park, Central Krabi and Central Khon Kaen, as well as positive rental growth from existing malls. Occupancy remained strong at around 91%, while rental rates and tenant sales continued to support revenue growth. The segment also benefitted from a favourable tenant mix and operating leverage, helping rental and services maintain a strong gross margin expansion of 120bp yoy despite the addition of new assets. CPN’s rental and services accounted for around 88% of total operating revenue in 2Q26.
- Hotel and residential businesses also recorded healthy growth. Hotel revenue increased 5% yoy, supported by higher room revenue and an
improvement in operating performance, with hotel occupancy at around 79%. The residential business delivered stronger growth, with revenue increasing 29% yoy, driven by higher transfers from new condominium and housing projects. Together, hotel and residential revenue contributed around 12% of total operating revenue.
- CPN’s earnings momentum is expected to continue in 2H26, supported by the ramp-up of newly opened assets and continued growth of existing
malls. Key catalysts include the continued ramp-up of Central Park and Central Krabi, as well as the upcoming opening of Central Northville and new hotel projects. Management targets 5-8% yoy growth in rental and service income in 2026, while occupancy is expected to remain at a healthy level. We also expect operating leverage from mature assets to partly offset the initial margin dilution from new projects. Overall, the strong 2Q26 rental performance, solid occupancy and expanding asset base should support continued earnings growth in 2H26.
BUY (Maintained)
Current price:
Target price:
Upside:
Bt67.75
Bt80.00
18.52%
Analyst
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