Asia Plus upgrades CBG to Buy with 59 baht target on CJ MORE synergy

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Summary · why it matters

Asia Plus Securities upgraded CBG to Buy from Trading while maintaining its 2027 target price of 59.00 baht, based on a PER of 16.9 times, after Mr. Sathien Sathienthamma, an executive and major shareholder of CBG and of C.J. Express Co., Ltd., the operator of the CJ MORE convenience store business, revealed a plan to list CJ MORE on the stock exchange within 2029. CJ MORE has averaged 31% annual revenue growth over the past three years, reaching 77 billion baht in 2025, and targets revenue of 80 billion baht in 2026 and 100 billion baht in 2027, driven by expanding its branches from about 2,000 in 2025 to 2,500 in 2026 and 3,200 in 2027. Although CBG does not hold a stake in CJ MORE, the research team views the store network's expansion as an indirect positive through synergies, including adding a distribution channel for Carabao energy drinks, for which CBG currently derives only about 12% of total revenue from modern retail channels; building brand awareness for OEM products such as LoveZa, which has begun selling in CJ MORE stores; and increasing revenue from packaging sales to Tawandang 1999 Co., Ltd. As for the 2026 normal profit forecast of 3.1 billion baht, up 9% YoY, there may be downside from cost pressure due to the war, but the research team expects profit to still grow well YoY in 3Q26 and accelerate to its annual peak in 4Q26.

Impact on stocks 1

Consumer Staples▲ · 1 stocks
Carabao Group Public Company Limited
CBG
▲ PositiveDemandrelevance

CJ MORE's store expansion adds a distribution channel for Carabao energy drinks and OEM products like LoveZa, boosting CBG's modern-trade sales.

Off-coverage companies 2

CJ Express GroupPrivate▲ Positive
Capitalrelevance

CJ MORE plans to list on the stock exchange within 2029, with revenue growing 31% annually to 77 billion baht in 2025.

ตะวันแดง 1999Private▲ Positive
Demandrelevance

CBG's packaging sales to Tawandang 1999 are expected to rise as CJ MORE's store network expands.

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