CPAXT Shares Rise Amid Limited Margin Impact from Subdued Economic Recovery

On Monday at 2:28 PM (Bangkok time), the share price of CP Axtra Public Company Limited (SET: CPAXT ) added 1.36% or THB 0.20 to THB 14.90, with a trading value of THB 100.30 million. Land and Houses Securities (LHS) has provided an analysis of CPAXT, noting that same-store sales growth (SSSG) for the second quarter of 2026 to date remains steady year-on-year. This reflects an ongoing but fragile economic recovery. Notably, the ‘Thai Chuay Thai Plus’ program is expected to serve as a supportive factor on the business-to-business (B2B) side. Overall, LHS anticipates that the company’s gross margin will be roughly unchanged from the previous year. The improvement in the business-to-consumer (B2C) margin—attributable to CPAXT’s decision not to participate in industry-wide price promotions—should help offset margin pressures in the B2B segment. Regarding energy costs, the company estimates the impact on margins will be limited and manageable. CPAXT intends to mitigate these effects by passing some of the costs onto suppliers and revising the minimum order requirements for free delivery. As for the Happitat project, although the launch has been delayed beyond the original schedule—with office space expected to open in the second quarter and commercial areas in the third quarter of 2026—the company maintains that losses from this project will be limited to no more than 5% of annual net profit. As a result, LHS assigns a ‘Buy’ recommendation on CPAXT, with a target price of THB 16.46 per share.