Central Retail Corporation Public Company Limited (SET: CRC) hoped for its business to reach its highest peak in Q4/2023, as it is advancing into the high season. The profit of this year soared, and brokers expected the 2023 normalized profit to grow by 14% to THB 8.194 billion and net profit to rise by 8.9% to THB 7.815 billion. The growing trend is expected to continue to 2025, according to the broker which recommended a target price at THB 48.
According to the forecast, the overall operation of Central Retail Corporation Public Company Limited (SET: CRC) in Q4/2023 is expected to be outstanding. Finansia Syrus Securities (FSS) suggested investors to buy CRC stock at the target price of THB 48 in 2024, expecting the 2023 normalized profit to grow by 14% from THB 7.175 billion to THB 8.194 billion and net profit to rise by 8.9% from THB 7.175 billion to THB 7.815 billion.
The growth is expected to continue in 2024 and 2025, with the expected net profit to rise 16% each year to THB 9.550 billion and THB 11.061 billion, respectively. The surge is driven by the recovery of consumption in Thailand, the return of tourists, measures spurring government’s consumption, and the economic recovery in Vietnam.
In addition, the analysts anticipated the profit in Q4/2023 to jump both QoQ and YoY, as the company moves into the high season. Meanwhile, the trend of Same Store Sales Growth (SSSG) in October and November 2023 were negative 1-2%.
The SSSG in the Fashion segment grew by 2%, while decreasing by 5% in the Hardline segment. The Food segment also dropped by 3% from the slowing economic overview of Vietnam. However, the analysts still believed that the SSSG in Q4/2023 will rebound to a low-digit growth in December as it is the high season.
As for the sales in the first nine months of 2023, there was 15% recovery from the pre-covid period compared to the 2022. The Hardline and Food segments had recovered above the pre-covid, while the Fashion segment had not fully recovered. The E-receipt policy, reducing the maximum of THB 50,000 in tax, is believed to stimulate the buy power in the country, CRC, which holds the big basket size, and a group of clients, which is listed in the tax base system, and gives benefits to the aforementioned bodies.
CRC operates in retail business, which was separated into three segments such as Fashion, Hardline, and Food with the portion of revenue in the first nine months of 2023 being 27%, 34%, and 39%, respectively. The company operates its business in three countries, namely, Thailand, Vietnam, and Italy. The portion of revenue in the first nine months of 2023 were 71%, 22%, and 7%, respectively.
