Company Coverage
Central Retail Corporation (CRC TB): Earnings Momentum Set To Surge
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Bt30.25
Bt35.00
15.70%
Bt33.00
Analyst
Highlights
- There was a positive tone at the Asian Gems Conference. Management guided that SSSG in Jul-Aug 26 was at a low positive single digit yoy.
- In our view, with lower rainfall and improving consumer spending sentiment, the strong SSSG momentum could continue in Sep 26.
- Maintain BUY with a higher target price of Bt35.00 (from Bt33.00) following our earnings revision.
Analysis
- Positive tone at Asian Gems Conference. Central Retail Corporation’s (CRC) management presented at the Asian Gems conference, and the tone was positive. Management guided that SSSG in Jul-Aug 26 was at positive low single-digit yoy (our estimates: food 5-6% yoy, Hardline -2% to -3% yoy, fashion 1-2% yoy). The operational improvement and better environment lifted the overall SSSG. In our view, with lower rainfall and improving consumer spending sentiment, the strong SSSG momentum could continue in Sep 26 and we preliminarily estimate 3Q26 SSSG at 2-3% yoy.
- Food retail showed the strongest momentum. The food retail segment is expected to be the sales driver in 2H26-2027. Tops continued to benefit from effective marketing, while completed store renovations provided additional support through better product visibility and improved traffic. In addition, the company has been working closely with suppliers to introduce more exclusive products at Tops, allowing it to better meet consumer demand. Go Wholesale has continued to build stronger brand awareness. With its current store scale providing a sufficient customer base for data analysis, the company can better respond to consumer demand and reduce shrinkage. As a result, revenue growth remained in the double-digit range, while gross margin also improved. GO! and go! in Vietnam recorded positive low single-digit yoy SSSG in Thai baht partly due to the appreciation of the Vietnamese dong against the Thai baht, which had a positive accounting translation impact. Given the aggressive pace of new store openings in Vietnam, the pre-operating expenses should be more than offset by the better gross margin from the larger scale.
Highlights
- There was a positive tone at the Asian Gems Conference. Management guided that SSSG in Jul-Aug 26 was at a low positive single digit yoy.
- In our view, with lower rainfall and improving consumer spending sentiment, the strong SSSG momentum could continue in Sep 26.
- Maintain BUY with a higher target price of Bt35.00 (from Bt33.00) following our earnings revision.
Analysis
- Positive tone at Asian Gems Conference. Central Retail Corporation’s (CRC) management presented at the Asian Gems conference, and the tone was positive. Management guided that SSSG in Jul-Aug 26 was at positive low single-digit yoy (our estimates: food 5-6% yoy, Hardline -2% to -3% yoy, fashion 1-2% yoy). The operational improvement and better environment lifted the overall SSSG. In our view, with lower rainfall and improving consumer spending sentiment, the strong SSSG momentum could continue in Sep 26 and we preliminarily estimate 3Q26 SSSG at 2-3% yoy.
- Food retail showed the strongest momentum. The food retail segment is expected to be the sales driver in 2H26-2027. Tops continued to benefit from effective marketing, while completed store renovations provided additional support through better product visibility and improved traffic. In addition, the company has been working closely with suppliers to introduce more exclusive products at Tops, allowing it to better meet consumer demand. Go Wholesale has continued to build stronger brand awareness. With its current store scale providing a sufficient customer base for data analysis, the company can better respond to consumer demand and reduce shrinkage. As a result, revenue growth remained in the double-digit range, while gross margin also improved. GO! and go! in Vietnam recorded positive low single-digit yoy SSSG in Thai baht partly due to the appreciation of the Vietnamese dong against the Thai baht, which had a positive accounting translation impact. Given the aggressive pace of new store openings in Vietnam, the pre-operating expenses should be more than offset by the better gross margin from the larger scale.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Bt30.25
Bt35.00
15.70%
Bt33.00
Analyst
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