Brokers positive on CRC's MaxValu acquisition, see further upside

M&A · PartnershipAnalyst

โดย thunhoon.com·

Summary · why it matters

Krungsri Securities and KGI Securities have a positive view on Central Retail Corporation's acquisition of 30 MaxValu branches. Krungsri says the deal accelerates food business expansion and adds over 900,000 customers. The deal is expected to close in the fourth quarter of 2026, with all branches gradually rebranded to Tops. Investment per branch is expected to be lower than opening new stores, and the company targets turning EBIT positive in 2027, from MaxValu's 2025 sales of 3.82 billion baht and net loss of 266 million baht. Krungsri expects the deal to boost CRC's 2027 sales by about 1.7% and provide 1 to 2% upside to normalized profit, maintaining a buy rating with a target price of 27.50 baht. KGI views the impact on CRC's balance sheet as minimal since the debt is not significantly large. In the short term, CRC may have to absorb losses from rebranding expenses, but the medium to long term is positive from increased sales share and margins, as well as cost savings from distribution centers and logistics. KGI maintains a buy rating with a mid-2027 target price of 23.80 baht, seeing potential for some PER re-rating from the positive trend.