Following CP Axtra Public Company Limited (SET: CPAXT)’s announcement of its THB 8.1 billion acquisition of Malaysia-based foodservice operator Renewed Hope—a deal that further deepens its presence in the ASEAN food market—Bualuang Securities (BLS) and Kasikorn Securities (KS) swiftly issued their preliminary analysis. Both brokerages weighed in on the strategic implications and potential financial impact of the transaction, while noting that additional details would be forthcoming at the company’s analyst briefing.
Update from Bualuang Securities (BLS):
According to the analyst meeting this morning, the management detailed that Renewed Hope generated MYR 1.1 billion (THB 8.1 billion) of revenue in 2024, representing a net profit margin of 5.4%.
The management planned to expand the food service market in Malaysia with Lucky Frozen’s 60-year experience as market leader. Additionally, the firm added that this is not a connected transaction to CP Group.
CPAXT expected a revenue recognition from Renewed Hope from September 1, 2025 onward.
BLS noted that it had a Neutral view from the meeting as this transaction has less impact on its CPAXT’s core earnings estimations in 2025-26 (+/- 2%). Still, BLS recommends ‘BUY’ on CPAXT.
Bualuang Securities (BLS) Analysis (prior to analyst meeting):
Details on the acquired businesses remain limited at this stage. According to preliminary discussions with CPAXT’s Investor Relations, the transaction price indicates a price-to-earnings ratio lower than CPAXT’s current trading multiple of 17.25 times. While the investment does expand CPAXT’s foodservice footprint to Malaysia, the lack of comprehensive disclosure means that BLS is unable to fully assess the financial impact. Based on the investment value of THB 8.1 billion, the deal equates to approximately THB 0.77 per share. BLS recommends waiting for further information, which is expected to be provided at the analyst meeting this morning.
Kasikorn Securities (KS) Analysis (prior to analyst meeting):
Kasikorn Securities stated that the deal, with a value of approximately THB 8.0 billion, is relatively modest—accounting for 7.21% of the company’s net tangible assets—well below the 15% threshold that would trigger significant transaction reporting requirements with the SEC/SET.
Renewed Hope is an investment holding company with stakes in several businesses, primarily under the Lucky Frozen brand, known for importing, manufacturing, and distributing food to hotels, restaurants, retailers, and wholesalers in Malaysia.
CPAXT has scheduled an analyst meeting this morning from 9:30 to 9:45 am to provide further details.
