We have a BUY call on CPALL, premised on the firm proving an earnings recovery through 2022 (driven by heavier traffic to 7-Eleven), prompting the market to bid up the stock price.
Profit beat our estimate and consensus
CPALL reported core earnings of Bt3.5bn for 1Q22, up by 25% YoY and 38% QoQ. The number beat our estimate by 11% (and the consensus by 6%), mainly because CPALL marked SSSG of 13%, while we had assumed only 11%. The strong profit was driven by the core 7-Eleven operation.