Maybank Securities Thailand has reiterated its ‘Buy’ recommendation on CP ALL Public Company Limited (SET: CPALL) with a target price of THB 60.00, following urgent developments regarding the potential inclusion of its subsidiaries in the ACM Holding Company Limited (ACMH) virtual bank group.
Earlier, CPALL called a conference morning meeting to address concerns after its independent directors disagreed with the potential consolidation of three CPALL subsidiaries—Counter Service Co., Ltd., Thai Smart Card Company Limited, and CP Axtra Public Company Limited (SET: CPAXT)—under ACMH, which is a virtual bank subsidiary of the Charoen Pokphand Group (CPG).
Key points from the meeting revealed that after ACMH applied for a virtual bank license, CPALL’s board convened to review the possible participation of its subsidiaries in ACMH’s financial business. However, there has been no clarification of critical transaction details, such as deal valuation or procedural steps, and no Independent Financial Advisor report has been prepared thus far.
The matter is set to be presented to CPALL shareholders for approval at an extraordinary general meeting (EGM) scheduled for 29 May. As this is a connected transaction, the CP Group will not be eligible to vote.
Maybank expects short-term share price pressure from ongoing news flow. Nevertheless, the brokerage views this as a buying opportunity, anticipating that the deal is unlikely to be approved at the EGM since all three subsidiaries engage in businesses beyond financial services. Meanwhile, CPALL’s robust and consistently growing profit outlook supports the continued ‘Buy’ rating, with a target price of THB 60.00.
