Earnings Report /
Thailand

Central Retail Corp PCL: Big beat! Solid 2H22 ahead

  • Earnings beat our estimate and the consensus

  • CRC reported a core profit of Bt1,849m for 2Q22

  • Revenue from retail sales was Bt51,202m

Bualuang Securities
16 August 2022

The reopening of Thailand and the return of mass foreign tourism will support traffic to malls and department stores. We are fully confident that CRC will prove a strong earnings recovery. BUY to a DCF-derived target price of Bt44.

Earnings beat our estimate and the consensus

CRC reported a core profit of Bt1,849m for 2Q22, a YoY turnaround from a Bt471m loss for 2Q21 and up 68% QoQ. The result was 37% above our estimate (and the consensus), due to a slightly fatter GM and considerably lower SG&A expenses than assumed. Including extra items (mainly an FX loss from rolling over euro-and Vietnamese dong-denominated promissory notes), net profit was Bt1,486m (a Bt471m loss for 2Q21 and up 24% QoQ). The Fashion and Food lines led the recovery with SSSG of 56% and 18%, respectively (Hardline’s SSSG was 2%).