CPALL Soars: A Bright Spot in the Market as Shares Close on a High Note

CPALL Stock Closes Positively at 66.25 Baht

Shares of CPALL added 0.38% to close at 66.25 baht, an increase of 0.25 baht, with a trading value of 2,105.72 million baht. The market opened at 66.00 baht, with the price rising to a high of 66.75 baht and falling to a low of 65.75 baht.

7-Eleven Trials QR Code Payment Service

Krungsri Securities views the news positively, as 7-Eleven stores have started trialing the service to scan and pay via QR Code from banking apps with no minimum. The trial service is open to all 232 branches nationwide, supporting scanning through 7 banks, including Kasikorn Bank, Siam Commercial Bank, Ayudhya Bank, Bangkok Bank, Government Savings Bank, UOB, and Mizuho Bank.

However, it remains to be seen whether 7-Eleven will expand its service branches or support additional banks in the future.

Promptpay Registrants Exceed True Money Users

Data from Techsauce shows that Thailand has 77.2 million Promptpay registrants in 2023, surpassing the number of True money users at 50 million. This is expected to increase the opportunity to sell more products in the long term.

Q2/66 Normal Profit Trend Expected

The Q2/66 normal profit trend is expected to be in the region of 5.7-5.9 billion baht, with high growth of +36% yy. This is due to 1) the positive SSSG direction, which is still positive at +1-4% for all formats, and better than the group retail, and 2) the GPM of 7-Eleven stores.

Maintain “Buy” Recommendation

The “Buy” recommendation is maintained, with a 2025 target price of 84 baht. CPALL is selected as the most outstanding stock in the retail sector, with benefits from CPAXT’s restructuring, expected to create synergies of 5.0 billion baht within the next 3 years. The valuation is also considered cheap, with the stock price trading on PER in 2024 at 25 times below the average value -1.25SD.

Tags: CPALL, CP ALL, Thai stocks