Kasikorn Securities recently attended CP All Public Company Limited (CPALL)’s analyst meeting, assessing the outlook as “slightly positive” based on management’s latest guidance and strategic direction for 2026.
Management has set a target for Same Store Sales Growth (SSSG) in 2026 at +2%, a notable improvement from the -0.3% in 2025. The company also anticipates its gross margin will increase by approximately 20 basis points. CPALL has outlined a branch expansion plan for 2026, targeting the opening of 700 new outlets with a projected capital expenditure (CAPEX) budget of THB 12 to 13.6 billion.
For 2026, CPALL will focus on three core strategies:
- Modernizing Store Formats: Upgrading branches to enhance the customer experience and keep pace with changing consumer habits.
- Product Innovation: Launching new products tailored to the evolving and diverse needs of consumers in different regions.
- Leveraging Technology: Incorporating technology to better understand customer demands and drive operational efficiency.
According to Kasikorn Securities, Quarter-to-date (QTD) SSSG has turned positive at 1-2%, driven by a recovery in tourist arrivals and overall consumption. However, the brokerage expects a more pronounced recovery in the second half of 2026, following the formation of a formal government and improved clarity in budget disbursement and state-led measures.
Management clarified that the recent increase in dividend payout ratio—set for 2025—reflects a sustainable level that the company plans to maintain over the long term. Additionally, CPALL intends to manage excess liquidity by repaying debt and pursuing share buyback programs as deemed appropriate, to enhance shareholder returns through all three approaches.
Citing these developments, coupled with solid operational execution, Kasikorn Securities maintains its ‘Outperform’ rating on CPALL, with a target price of THB 57.2.
