Kasikorn Securities wrote in a note that CP Axtra Public Company Limited (SET: CPAXT) has provided an update on its operations in Cambodia following rising concerns over the clash at Thai borders. Despite regional uncertainties and restrictions, business in Cambodia continues as normal. The company revealed that over 60% of the goods sold in Cambodia are sourced domestically, reducing reliance on cross-border logistics. For imported goods, CPAXT has shifted primarily to sea freight, effectively mitigating risks from temporary border closures. This strategic move ensures operational stability and supply chain continuity in Cambodia.
In Thailand, meanwhile, CPAXT has temporarily closed ten branches located in five border provinces since July 24, in accordance with safety measures. The company is closely monitoring the evolving situation and will adapt its response as necessary. However, Cambodia contributes only about 0.8% to CPAXT’s total revenue, indicating that recent disruptions will have limited financial impact on the group as a whole.
In terms of performance, Same Store Sales Growth (SSSG) for the period July 1–20, 2024, saw a modest improvement compared to the second quarter’s average. SSSG remains slightly positive at less than 1% for both B2B and B2C segments, with weather-related challenges affecting sales less than in the previous year.
Given the company’s proactive management of executive transitions and the limited exposure to external disruptions, analysts maintain a “Buy” rating on CPAXT, with the target price set at THB 29.20 per share. As the company navigates both leadership changes and regional operational challenges, it remains well positioned for continued stability and growth.
Additionally, CPAXT has formally notified the Stock Exchange of Thailand of the upcoming retirement of two key executives. Mrs. Saowaluck Thithapant, who serves as both Director/Group Chief Wholesales Business Officer and Group CFO, along with Ms. Thanyamas Worachart, Group Chief Shared Service Officer, will step down from their roles, effective August 1.
According to discussions with company representatives, the succession for these vital leadership positions has been planned well in advance. A successor for Ms. Thanyamas, who oversees MAKRO’s financial operations, has already been selected. CPAXT management emphasized that the transition will be smooth, with responsibilities to be effectively handed over to the incoming executive. CPAXT added that the company is confident that this change in leadership will not disrupt its daily operations or overall business strategy.
