Maybank Securities Thailand reports that CP ALL Public Company Limited (SET: CPALL) posted a record-breaking net profit for 1Q26, reaching THB 9.12 billion, marking a 20% year-on-year and 26% quarter-on-quarter growth. Excluding foreign exchange gains, the core profit was THB 8.93 billion, up 18% YoY and 23% QoQ—surpassing Maybank and market estimates by 13% and 10%, respectively. The outstanding performance was primarily driven by strong operations in the convenience store business (CMS) and a recovery in the CPAXT segment.
Key highlights include a turnaround in 7-Eleven’s same-store sales growth (SSSG), which rose by 1.9% after three consecutive negative quarters, supported by increased travel and consumer spending following the general election in February and favorable weather boosting cold beverage sales. Extending store operating hours and higher average bill values to THB 90 offset a slight decline in daily customers per store.
CPALL added 139 net new 7-Eleven branches in 1Q26, bringing the total one-year expansion to 654 stores, and total sales rose 6% YoY—contributed by a 7% increase in the convenience store segment and a 5% uptick in CPAXT.
While consolidated gross margin dipped by 9bps YoY to 22.7%, due to lower margins at CPAXT, the convenience store segment’s margin expanded 20bps YoY to 20.6% on the back of strong ready-to-eat and personal care categories, especially high-margin beauty products. Operating expenses increased 5% YoY due to branch expansion and higher advertising, partially offset by a 5% drop in financing costs.
Despite closing 49 7-Eleven branches in Cambodia amid Thai-Cambodian tensions—leaving 63 operating stores—Maybank notes that the impact on overall sales and profit is immaterial.
Maybank projects SSSG growth of 1-2% for the year, aided by hot weather boosting beverage sales. The strong 1Q26 profit represents 30% of the firm’s 2026 forecast, and Maybank expects robust earnings momentum to continue. With the stock trading at a 2026 PE of 13x—about 1 SD below its 5-year average—Maybank maintains its “Buy” rating and DCF-based target price of THB 60.
