CRC: 4Q20 Earnings Grew QoQ and Better Performance Outlook in 2021E

CRC: 1Q21 Earnings Was Pressured by New Wave of COVID-19 Outbreak

CRC: 3Q20 Earnings Should Recovery After Re-Opening All Department Stores

CRC: Acquisition of COL Will Encourage Hardline and Omni-Channel Business

CRC: 2Q20 Earnings Will Be the Bottom Quarter

Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

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Equity Bottom-Up

Central Retail Corp Ltd / Equity Bottom-Up

<p><strong>CRC reported 3Q20 net profit of Bt837m (-40%YoY, flip from net loss of Bt2.6bn in 2Q20), below our expectation.</strong></p><div>• The better QoQ performance was a result of easing lockdown and reopening all stores in May 20. Meanwhile, 3Q20 results still drop YoY due to weak domestic consumer spending.</div><div></div><div>• We cut 2020-22E earnings forecast by 80%, 7% and 4%, respectively to factor in weaker consumer spending than our expected. However, we expect 4Q20 performance continue to grow QoQ, supported by government measures and company’s promotions.</div><div></div><div>• We still like CRC for its long-term outlook given leading position in domestic and overseas retail industry with diversified platforms and customer base expansion in Vietnam.</div><p></p><p><strong>We maintain our BUY rating with new target price of Bt37.25(-13% from previous target price) derived from a DCF (10% WACC, 2% TG), implies 24.5xPE’21E, which represents a 4% discount to the World Consumer Discretionary sector.</strong></p>

CRC reported 3Q20 net profit of Bt837m (-40%YoY, flip from net loss of Bt2.6bn in 2Q20), below our expectation.• The better QoQ performance was a result of easing lockdown and reopening all stores in May 20. Meanwhile, 3Q20 results still drop YoY due to weak domestic consumer spending.• We cut 2020-22E earnings forecast by 80%, 7% and 4%, respectively to factor in weaker consumer spending than our expected. However, we expect 4Q20 performance continue to grow QoQ, supported by government measures and company’s promotions.• We still like CRC for its long-term outlook given leading position in domestic and overseas retail industry with diversified platforms and customer base expansion in Vietnam.We maintain our BUY rating with new target price of Bt37.25(-13% from previous target price) derived from a DCF (10% WACC, 2% TG), implies 24.5xPE’21E, which represents a 4% discount to the World Consumer Discretionary sector.

CRC: Expect 4Q20 to Grow QoQ Backed by High Seasonality