CP All expected to benefit from inflation for good Q2

United Securities said in a research note that CP All's second-quarter net profit would rise 45.5 per cent year on year on higher customer traffic and spending per bill.

The steep cost of living has squeezed consumers into shopping for only daily necessities at neighbourhood outlets. As well, several manufacturers have hiked prices.

Same-store sales at the 7-Eleven chain increased 4.5 per cent, similar to the first quarter, despite low seasonality. CP All opened 120-150 7-Elevens in the second quarter.

The brokerage predicts a second-quarter net profit of Bt388 million on revenue of Bt30.46 billion.

United will likely revise CP All's net profit estimate for this year upwards after first-half earnings appeared on track to rise 73 per cent year on year to 82 per cent of the full-year forecast.

Ayudhya Securities said a delay in establishing Lotus Supercentres in China would not change its forecast for CP All's operating results this year, because that risk was already factored in.

Finalisation of the disposition plan had been expected earlier this month. CP All is only waiting for Chinese-government approval, which it expects this year.

Ayudhya said CP All's second-quarter net profit could jump 38 per cent to Bt367 million, thanks to contributions from new branches and a 6-per-cent increase in same-store sales.

The chain's branches expanded 10.97 per cent from 4,055 in last year's second quarter to 4,500 in this year's. It expects to end the year with 5,000 branches, sending earnings up 65 per cent from last year.