CP All Public Company Limited (SET: CPALL) announced its financial results for the second quarter of 2026, with both Morgan Stanley and Citi maintaining positive outlooks on the company following a performance that met expectations.
Morgan Stanley highlighted that CP All’s second quarter sales rose by 3.3% year-on-year, while EBIT increased by 1.2% and net profit (PATMI) grew by 11%. These results were in line with both Morgan Stanley’s projections and market consensus. Same-store sales growth (SSSG) moderated to 0.8% in the quarter, compared to 1.9% in the first quarter. The decline was attributed to lower store traffic in June, due to CP All not participating in the government’s co-pay scheme, though this was partly offset by stronger activity in April and May.
Gross profit margin for convenience stores held steady year-on-year at 29.3%. Product margin improved by 20 basis points to 28%, resulting from a favorable product mix that compensated for higher energy expenses. Operating profit margin (OPM) in the convenience store segment increased by 38 basis points to 6.6%, marking the highest second quarter margin since 2018, supported by stringent control of utility expenses. The company added 200 new convenience stores in the quarter, expanding its network to 16,284 stores, and remains on track to reach its full-year target of 700 new stores.
Morgan Stanley rated Overweight on CP All with a target price of THB 68.00 per share.
Citi also noted on CP All’s net profit at THB 7.5 billion for 2Q26, up 11% year-on-year but down 18% quarter-on-quarter, consistent with both its expectations and consensus forecasts. Growth was fueled by expansion and product mix improvements within its convenience store operations, despite higher distribution costs. The gross margin for the convenience store business remained stable as increased logistics expenses were balanced by better product margins.
Looking ahead, Citi anticipates that SSSG may remain subdued in the third quarter due to ongoing government stimulus but expects a recovery in margins driven by lower domestic oil prices and continued improvements in product mix. The core convenience store business continues to provide earnings stability, even as other segments, such as CPAXT, experience slower recovery. Citi maintains a Buy rating for CP All, viewing the company as an attractive value within the Thai retail sector.
