Another strategic move

Investment Thesis:

Strong cashflow-generating capacity from 34 successful shopping malls. In 2019, these malls generated cashflow from operations amounting to Bt20bn for Central Pattana (CPN). Despite the near-term hiccup from the COVID-19 pandemic, these malls are still enjoying a high occupancy rate of 90%, thanks to their superb locations throughout Thailand. We expect net profit and cashflow to improve strongly in 2022 when rental discounts given to tenants trickle down to a halt by end-2022.

Clear expansion plan. CPN targets to grow revenue by at least a 10% CAGR during 2019-2025. This will be achieved by organic growth and asset enhancement, opening of 2-3 new malls p.a., and expansion into other businesses e.g. residential, office, hotels, etc. that complement its shopping mall business.

More frequent asset divestments in the next five years. These should not only bring in fresh funds for future expansion, but also result in potential asset divestment gains.