Earnings Report /
Thailand

Central Retail Corp PCL: Slight profit beat, led by margins

  • Slightly above our estimate

  • CRC reported 3Q22 core earnings of Bt1,291m

  • Revenue from retail sales was Bt52,122m

Bualuang Securities
15 November 2022

We have a BUY call on CRC to a DCF-derived YE23 target price of Bt46, premised on a strong earnings recovery through 2023, driven by reopening and solid mid- to long-term growth outlooks for the Hardline and Food line.

Slightly above our estimate

CRC reported 3Q22 core earnings of Bt1,291m, a YoY turn-around from a loss of Bt2,070m for 3Q21 but down 30% QoQ (seasonality and SG&A expenses). The number was 8% above our estimate, due to a fatter GM than assumed (but was in line with the Bloomberg consensus). Including extra items (an FX loss, gains on the disposal of assets, and the reversal of a provision), CRC’s net profit would be Bt1,173m, a turnaround from a net loss of Bt2,241bn for 3Q21 but down 21% QoQ.