The securities company expects aggressive, focused marketing and rental income to boost the revenue of both players. Although cost of sales could rise in tandem with revenue, gross margins should hold up.

"Big C's gross profit margin (ex-rent income) is expected to stabilise at 8.8 per cent while Robinson's gross margin should climb from 22.6 per cent in fiscal 2006 to 23.0 per cent in the first quarter," it said.

Big C's first-quarter net profit is expected to rise by a moderate 1.7 per cent year on year, but 20 per cent quarter on quarter, to Bt670 million.

Robinson should report a net profit of Bt198 million, up 1.2 per cent quarter on quarter but down 12.9 per cent year on year, mainly due to the booking of depreciation expense from the revaluation of impairment assets starting the second quarter of 2006, at around Bt30 million per quarter.

CIMB-GK attributes its positive stance on both companies to their significant market shares in their segments.