Finansia Syrus Securities has expressed a positive outlook on Central Plaza Hotel Public Company Limited (SET: CENTEL) following its latest strategic move regarding its joint venture (JV) in Japan.
The JV, in which CENTEL holds a 53% stake, has successfully sold the Centara Grand Osaka hotel for JPY 38.5 billion. This sale price significantly exceeds the hotel’s book value, reflecting the success of CENTEL’s “asset-light” and capital recycling strategy.
According to Finansia Syrus, CENTEL will continue to manage the Centara Grand Osaka under a long-term lease agreement, allowing the company to unlock asset value without losing operational control. The deal is expected to generate a substantial one-time profit of approximately THB 1.4 billion in the first quarter of 2026 (1Q26), which should drive robust growth in CENTEL’s net profit both quarter-on-quarter (q-q) and year-on-year (y-y).
Finansia Syrus notes that the impact of this asset sale on CENTEL’s core profit after 2027 will be minimal. The brokerage maintains its earnings forecast and target price for CENTEL at THB 43 per share, reiterating its “BUY” recommendation on the stock.
