Central Retail Corporation Public Company Limited (SET: CRC) finds itself under the spotlight following the announcement of its full divestment of Rinascente, the Italian luxury department store chain, to its major shareholder, Harng Central Department Store (HCDS). The transaction, with a total consideration of €391 million (THB 14.7 billion), marks a significant reallocation of CRC’s assets, as the company looks to sharpen its focus on the rapidly expanding Thai and Vietnamese retail markets.
DBS Vickers has revised its stance on CRC, downgrading the stock from a “Buy” to a “Hold” while maintaining its target price at THB 25. The broker cited limited near-term upside and anticipated short-term earnings shortfall from the disposal of its Italy operations.
To counterbalance the anticipated earnings shortfall, CRC plans to accelerate its expansion in Vietnam and actively pursue merger and acquisition opportunities. While the divestment is acknowledged as a strategic move, DBS expresses concerns regarding the deal’s valuation and the allocation of proceeds.
According to CLSA, which remains non-rated on CRC, the deal provides CRC with an opportunity to repurpose the proceeds for debt repayment and to distribute a special dividend of THB 1.28 per share, equating to a simple yield of 5%. However, CLSA’s estimates indicate that net profit after tax (NPAT) could decline by close to 10% from 2026 onward, underlining the earnings drag from the Rinascente sale. On the positive side, the transaction enables CRC to pivot more decisively toward growth markets such as Thailand and Vietnam.
JPMorgan adopts a neutral view, highlighting CRC’s focus on streamlining its geographical presence and capital allocation following the sale. The transaction is expected to streamline CRC’s geographic focus on Thailand and Vietnam, while further consolidating HCDS’s European department store portfolio. The deal values Rinascente at roughly 11x 2024 (unadjusted) P/E and 7.8x EV/EBITDA, rates that JPMorgan notes are slightly below sector benchmarks but still in line for European department store peers. A one-off special dividend, with an approximate 5.2% yield on the back of a THB 7.7 billion after-tax gain, is planned for shareholders. The transaction is pending approval at the extraordinary general meeting (EGM) on November 6th, 2025.
Morgan Stanley, meanwhile, assigns an ‘Underweight’ rating to CRC, warning that the Rinascente sale must be succeeded by a concrete uplift in growth to generate real long-term shareholder value. While the implied valuation multiples are consistent with the industry, CRC’s NPAT is forecast to decline by around 11% following the divestment—a reduction that is only partially offset by the special dividend. The broker emphasizes the need for visible growth strategies beyond this deal to unlock CRC’s full potential.
