Shares of MK Restaurant Group Pcl (SET: M) dropped sharply by 7.41% to THB 22.50, down THB 1.80 as of 10:13 a.m. on Monday amid negative sentiment on the tighter margin of hot pot segment.
Analysts at Pi Securities attributed the continued slump in MK shares not only to concerns about shrinking margins stemming from its buffet promotions but also to heightened market anxiety after Central Plaza Hotel Pcl (SET: CENTEL) unveiled a deal to acquire a 40% stake in Lucky Suki. The entry of a major competitor into the buffet segment has intensified competition in the suki buffet market, putting additional pressure on MK, whose core business is directly tied to this segment.
While MK has moved to strengthen its buffet offering under the “Bonus Suki” brand, in addition to running promotions at “MK Suki,” these strategies, though helpful in driving sales, have increased margin pressures. The analyst noted that the impact on profitability remains a key concern, and investors should watch closely how the company manages operating costs over the medium to long term amid the challenging market conditions.
Meanwhile, Krungsri Securities reaffirmed its BUY rating on CENTEL and adjusted its 2026 target price to THB 37.50. CENTEL posted third-quarter net profit results that surpassed both their and market expectations, supported by robust margins and buoyant forward bookings. The firm’s ongoing expansion in the food segment, highlighted by the new partnership in Lucky Suki, is expected to provide further upside for CENTEL’s food business, as cited by Krungsri Securities. With recovering performance in both the hospitality and food sectors, the broker remains positive on CENTEL’s outlook.
The share price of CENTEL edged 3% higher in the morning.
