Company Coverage
CP ALL (CPALL TB): 2Q26: Results In Line; Strong CVS performance.
BUY (Maintained)
Current price:
Target price:
Upside:
Bt48.75
Bt62.00
+27.18%
Analyst
Highlights
CPALL reported a net profit of Bt7.5b (+11% yoy, -17% qoq), in line with our and consensus forecasts. Earnings were supported by the CVS business.
3Q26 earnings are expected to gradually improve, as Jul 26 SSSG increased by 1% yoy.
Management noting that the copayment scheme had only a mild impact on 7-Eleven convenience stores. • Maintain BUY with a target price of Bt62.00.
Analysis
Results in line. CP ALL (CPALL) reported a net profit of Bt7.5b (+11% yoy,-17% qoq), in line with our and consensus forecasts. The strong earnings were supported by the convenience store (CVS) business, which saw profit grow 13% yoy, leading to consolidated results of: a) revenue growth of 3% yoy, b) gross margin remaining flat yoy at 22.8%, c) other income growing 11% yoy, and d) interest expenses falling 5% yoy, which were offset by a 40bp yoy increase in SG&A-to-sales. 1H26 earnings accounted for 54% of our full-year forecast (vs 51% in 1H25), suggesting no downside risk to our earnings estimate.
CVS business earnings surged impressively. The CVS business delivered a strong performance, with earnings reaching Bt10.4b, up 14% yoy. The key drivers were: a) positive SSSG of 0.8% yoy, driven by stronger performance in April–May, supported by improving tourist arrivals, hot weather, and the long holiday period, but softened in June mainly due to the Thai Help Thai Plus copayment scheme, b) store expansion, c) an 8% increase in other income; and d) flat yoy gross margin, as improved product margins were offset by the impact of higher oil prices.
Weak 2Q26 contribution from CP AXTRA. CP Axtra (CPAXT) reported 2Q26 net profit of Bt1.87b, down 18% yoy and 33% qoq, reflecting weaker wholesale and retail operations. Wholesale EBIT fell 8% yoy to Bt1.6b, as sales grew 3.5% to Bt71.2b but SSSG declined 0.9%; gross margin fell 23bp to 11.2% and SG&A-to-sales rose 34bp to 10.6%. Retail EBIT declined 18% yoy to Bt2.2b, with sales up 0.4% to Bt55.3b and SSSG down 3.9%; gross margin was broadly stable at 17.7%, but SG&A-to-sales rose 249bp to 17.7% due to higher Omni Channel, IT and Happitat costs. Service and other income increased from data monetisation and promotional income, partly cushioning weaker operations.
Expect a strong recovery in 4Q26. 3Q26 earnings are expected to gradually improve, as Jul 26 SSSG increased by 1% yoy, with management noting that the copayment scheme had only a mild impact on 7-Eleven convenience stores. Moreover, we expect gross margins to expand yoy in 2H26 as pressure from high diesel prices gradually eases. This strong recovery in 4Q26 will be driven by improved consumer spending since the copayment scheme ended, alongside a low base in 4Q25.
Highlights
CPALL reported a net profit of Bt7.5b (+11% yoy, -17% qoq), in line with our and consensus forecasts. Earnings were supported by the CVS business.
3Q26 earnings are expected to gradually improve, as Jul 26 SSSG increased by 1% yoy.
Management noting that the copayment scheme had only a mild impact on 7-Eleven convenience stores. • Maintain BUY with a target price of Bt62.00.
Analysis
Results in line. CP ALL (CPALL) reported a net profit of Bt7.5b (+11% yoy,-17% qoq), in line with our and consensus forecasts. The strong earnings were supported by the convenience store (CVS) business, which saw profit grow 13% yoy, leading to consolidated results of: a) revenue growth of 3% yoy, b) gross margin remaining flat yoy at 22.8%, c) other income growing 11% yoy, and d) interest expenses falling 5% yoy, which were offset by a 40bp yoy increase in SG&A-to-sales. 1H26 earnings accounted for 54% of our full-year forecast (vs 51% in 1H25), suggesting no downside risk to our earnings estimate.
CVS business earnings surged impressively. The CVS business delivered a strong performance, with earnings reaching Bt10.4b, up 14% yoy. The key drivers were: a) positive SSSG of 0.8% yoy, driven by stronger performance in April–May, supported by improving tourist arrivals, hot weather, and the long holiday period, but softened in June mainly due to the Thai Help Thai Plus copayment scheme, b) store expansion, c) an 8% increase in other income; and d) flat yoy gross margin, as improved product margins were offset by the impact of higher oil prices.
Weak 2Q26 contribution from CP AXTRA. CP Axtra (CPAXT) reported 2Q26 net profit of Bt1.87b, down 18% yoy and 33% qoq, reflecting weaker wholesale and retail operations. Wholesale EBIT fell 8% yoy to Bt1.6b, as sales grew 3.5% to Bt71.2b but SSSG declined 0.9%; gross margin fell 23bp to 11.2% and SG&A-to-sales rose 34bp to 10.6%. Retail EBIT declined 18% yoy to Bt2.2b, with sales up 0.4% to Bt55.3b and SSSG down 3.9%; gross margin was broadly stable at 17.7%, but SG&A-to-sales rose 249bp to 17.7% due to higher Omni Channel, IT and Happitat costs. Service and other income increased from data monetisation and promotional income, partly cushioning weaker operations.
Expect a strong recovery in 4Q26. 3Q26 earnings are expected to gradually improve, as Jul 26 SSSG increased by 1% yoy, with management noting that the copayment scheme had only a mild impact on 7-Eleven convenience stores. Moreover, we expect gross margins to expand yoy in 2H26 as pressure from high diesel prices gradually eases. This strong recovery in 4Q26 will be driven by improved consumer spending since the copayment scheme ended, alongside a low base in 4Q25.
BUY (Maintained)
Current price:
Target price:
Upside:
Bt48.75
Bt62.00
+27.18%
Analyst
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