First Read: Central Pattana "Q126: Margin expansion drive earnings beat" (Buy)

Research evidence excerpt

First Read: Central Pattana "Q126: Margin expansion drive earnings beat" (Buy)

e is no material change to the company’s outlook. However, the sustainability, and 12/28E 5.40 4.95

potential upside, of retail margins is likely to be a key focus at the post-results briefing on

Sukrit Friestad

18 May. Earnings growth remains anchored by retail portfolio expansion, with continued

Analyst

ramp-up of new malls and asset enhancement initiatives supporting rental income. That sukrit.friestad@ubs.com

said, earnings contribution across segments is likely to remain uneven, with residential +662-613 5732

performance expected to stay volatile amid a challenging sector backdrop.

Alex Manoonpol

Valuation: Buy maintained; preferred sector pick alex.manoonpol@ubs.com

We maintain our Buy rating and SoTP-based price target of Bt72. While the strong +662-613 5770

results could prompt a modest positive market reaction, we note that the stock has

already partially re-rated in recent sessions alongside other consumption-related names

following a series of earnings beats. Nevertheless, we believe sustained tenant sales

momentum and continued margin expansion should support further re-rating over the

medium term, with CPN remaining our preferred name in the Thai property sector.

Highlights (Btm) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Revenues 48,336 53,498 53,556 56,344 62,482 68,277 72,957 76,013

EBIT (UBS) 19,173 22,214 23,836 25,369 28,187 31,560 33,472 35,098

Net earnings (UBS) 15,062 16,378 17,818 19,328 21,468 24,222 25,914 27,438

EPS (UBS, diluted) (Bt) 3.36 3.65 3.97 4.31 4.78 5.40 5.77 6.11

DPS (net) (Bt) 1.80 2.10 2.40 2.50 2.87 4.06 4.27 4.40

Net (debt) / cash (116,965) (116,588) (105,938) (112,367) (111,947) (109,494) (104,064) (97,605)