Brokers Remain Bullish on CPALL After Shareholders’ Resolution on Units Restructure

Shareholders of CP ALL Public Company Limited (SET: CPALL ) have voted on May 29, 2026, to reject the proposal to transfer three of the company’s core subsidiaries to ACM Holding Company Limited (ACMH), the virtual banking vehicle of Charoen Pokphand Group. The results of the vote showed that 96.4% of shareholders opposed the agenda, with 0.17% in favor and 3.42% abstentions. UOB Kay Hian Securities (Thailand) stated that CPALL’s shareholder meeting resolution is aligned with expectations, while its business operations remain normal with no operational changes. The outlook for 2026 performance remains positive, supported by continued same-store sales growth (SSSG) in Q2 and the 700 new branches expansion plan. In addition, the company enjoys support from its product strategy focusing on high-margin goods, especially ready-to-eat products, together with hot weather and reduced rainfall, which are expected to increase customer traffic and partially offset the impact from the “Thai Chuay Thai Plus” program. The securities firm maintains a “Buy” recommendation with a target price of THB 62. Finansia Syrus Securities disclosed that CPALL’s business has not been affected by the issue, believing that the rejection will help reduce market overhang. SSSG in Q2 grew slightly, and gross margin is projected to remain strong. The “Thai Chuay Thai Plus” program continues to benefit CPAXT and, as a result, CPALL as the parent company. The brokerage house expected that CPALL’s net profit in 2026 will grow by 11% from last year, and current share valuation (PER) of about 11 times is not expensive. As such, the “Buy” recommendation is maintained with a target price of THB 63. Krungsri Securities believes this vote result is a positive factor for CPALL and CPAXT, as retaining financial service business within the current structure preserves income potential and long-term retail ecosystem development. Krungthai XSpring Securities maintains an “Outperform” recommendation for CPALL, with the fundamentals of retail and convenience store business remaining robust due to branch expansion, solid SSSG, and continued development of an ecosystem linking financial services to the company’s large customer base. Chayawadee Chai-anant, Assistant Governor of the Corporate Relations Group at the Bank of Thailand (BOT), revealed that the process of considering virtual bank license applications will comply with the regulations announced by the Ministry of Finance. The key principle requires applicants to clearly structure their financial business group, separating it from the real sector to ensure effective supervisory oversight and risk management, aiming to mitigate conflicts of interest. Those applying for a virtual bank license may comply with the ministry’s objectives by: Transferring only financial service businesses (not necessarily the entire company) under the same group as Virtual Bank. Reducing shareholding in financial businesses to relinquish control. Returning non-essential financial service licenses. Undertaking any other actions to meet ministry objectives. Applying without restructuring but providing necessity reasons for consideration.