CPAXT invests 13.5 billion baht to buy TFP in Malaysia; KKPS keeps Hold with target price of 16.70 baht

M&A · Partnership
โดย Kaohoon·THMY·Read original
Summary · why it matters

CPAXT has agreed to acquire The Food Purveyor (TFP) in Malaysia for 1.66 billion ringgit, or approximately 13.5 billion baht. The deal was approved by regulators on September 1, 2026, and is expected to boost CPAXT's retail sales by about 4% in 2027, but the impact on net profit in the same year is only about 2% due to financing costs from a loan covering 80% of the deal value at an interest rate of 3%. TFP is a premium supermarket operator in Malaysia under the brands Village Grocer, BSC Fine Foods, and The Food Merchant, with about 50 branches, and has a revenue growth rate about twice that of the Malaysian food retail industry, which grew about 4% in 2025. However, the acquisition price is relatively high, with an implied P/E of about 28 times, assuming a net profit margin of 5%. Kiatnakin Phatra Securities (KKPS) maintains a "Hold" recommendation on CPAXT shares with a target price of 16.70 baht, viewing the deal as having long-term strategic rationale in expanding into the premium market and increasing bargaining power with suppliers, but the short-term earnings boost is limited. Meanwhile, earnings per share (EPS) estimates are expected to rise from 0.897 baht in 2025 to 1.11 baht in 2028, and the dividend yield is about 5-6%.

Impact on stocks 2

Consumer Staples▲ · 1 stocks
CP Axtra Public Company Limited
CPAXT
± MixedCapitalrelevance

CPAXT agrees to acquire Malaysia's TFP for 13.5 billion baht, a debt-funded M&A deal with limited near-term earnings boost and a rich 28x implied P/E.

Financials▲ · 1 stocks

Off-coverage companies 1

The Food PurveyorPrivate± Mixed
Capitalrelevance

TFP is the acquisition target, a premium Malaysian supermarket operator with ~50 branches and revenue growth twice the industry's.

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