CPALL’s strong earnings beat should push the stock back into the spotlight. And we expect the company to sustain YoY profit growth through 4Q22 and into 2023. BUY!
Earnings beat our estimate and the consensus
CPALL reported core earnings of Bt3,810m for 3Q22, up by 159% YoY and 24% QoQ. Core profit beat our estimate by 22% (and the consensus by 16%), mainly because revenue (7-Eleven marked SSSG of 22%) and other income exceeded our assumptions. Including an FX loss of Bt133m, CPALL’s NPAT would be Bt3,677m, up by 146% YoY and 20% QoQ. Strong revenue growth substantially outweighed the effect of higher expenses.