CGS International Securities (CGSI) highlighted the 3Q24 performance of Central Retail Corporation Public Company Limited (SET: CRC) as the company reported a substantial net profit of THB 2.1 billion, marking an impressive 86% YoY increase and a noteworthy 28% QoQ surge. The core net profit, excluding non-operating items, stood at THB 1.6 billion, reflecting a solid 24% YoY uptick and a modest 4% QoQ rise.
These results exceeded the Bloomberg consensus by 17% and CGSI’s estimates by 8%, primarily attributed to lower-than-anticipated SG&A expenses and higher-than-expected other income. The robust performance in Q3 bolstered the net profit for the first nine months of 2024 to THB 6 billion, indicating a substantial 22% YoY growth and achieving 68% of CGSI’s full-year forecast.
CGSI has raised CRC’s earnings per share (EPS) projections for 2024, 2025, and 2026 by 4.4%, 2.0%, and 0.8% respectively, in line with the actual results of 3Q24, along with prevailing sales and cost patterns. The analyst upholds an ‘Add’ rating for CRC, deeming it the top pick stock in the Thai retail sector, and sets a target price of THB 44 per share.
Moreover, Finansia Syrus Securities (FSS) highlighted that CRC’s core profit for 9M24 represented 69% of FSS’s full-year projection, an improvement from the 67% recorded in the same period in 2023. The analyst maintains the forecast for CRC’s 2024 core profit at THB 8.5 billion, reflecting an 8% YoY increase, with expectations of a surge in 4Q24 as the company enters the peak season.
Major branch renovations have been progressively finalized, with La Rinascente’s renovation completed in October. The overall performance for same-store sales growth (SSSG) in the first ten days of November (4QTD) is still marginally down by 1-2%, indicating a recovery from the -3% witnessed in 3Q24.
FSS projects CRC will achieve a net profit of THB 8.52 billion in 2024, THB 9.36 billion in 2025, and THB 10.13 billion in 2026, maintaining a ‘BUY’ recommendation with a target price of THB 42 per share.
