Our BUY call is premised on an earnings recovery through 2022 (driven by heavier traffic to 7-Eleven), prompting a valuation re-rating.
Profit missed our estimate by 18% and the street by 10%
CPALL reported core earnings of Bt3,063m for 2Q22, up 22% YoY but down 13% QoQ. Although sales were very strong, core profit missed our estimate by 18% (and the consensus by 11%), mainly due to heavy SG&A expenses. CPALL marked 2Q22 SSSG of 14.2%, driven by heavier traffic to 7-Eleven stores.