Company Coverage
Central Plaza Hotel: (CENTEL TB) Slight Earnings Growth Expected In 2Q26
BUY (Maintained)
Current price:
Target price:
Upside:
Bt38.25
Bt45.00
+17.6%
Analyst
Analyst
Nonpawit Vathanadachakul
Highlights
- CENTEL is expected to report a slight net profit of Bt114m (+3.3% yoy, -89.4% qoq) for 2Q26.
- The strongest contributor continues to be hotels in the Maldives, followed by robust performance of its hotels in Bangkok.
- The outlook for 3Q26 is encouraging, with a traffic boost from a large event and strong bookings in several regions. CENTEL remain as our top pick; maintain BUY with a target price of Bt45.00.
Analysis
- Slight earnings growth expected in 2Q26. We expect Central Plaza Hotel (CENTEL) to report a net profit of Bt114m (+3.3% yoy, -89.4% qoq) for 2Q26. Top-line should come in at Bt5.8b (+3.3% yoy, -13.9% qoq), supported by resilient performance from both hotel and food businesses. The earnings growth is mainly driven by the continued strong performance of its hotels in the Maldives, which saw a robust 69% yoy growth in RevPar. The strong RevPar at the Maldives is contributed by a yoy uplift in occupancy rate from the wholesale market. Moreover, the two new hotels at the Maldives have been ramping up well in terms of room rate and occupancy rate. Meanwhile, the RevPar of hotels in Thailand still saw a 3% yoy growth despite the impact of the US-Iran war. We expect the share of profit to decline yoy, primarily due to the disposal of assets in Osaka and weaker hotel performance in Dubai amid the ongoing war. As a result, we expect margins to remain flat yoy.
Highlights
- CENTEL is expected to report a slight net profit of Bt114m (+3.3% yoy, -89.4% qoq) for 2Q26.
- The strongest contributor continues to be hotels in the Maldives, followed by robust performance of its hotels in Bangkok.
- The outlook for 3Q26 is encouraging, with a traffic boost from a large event and strong bookings in several regions. CENTEL remain as our top pick; maintain BUY with a target price of Bt45.00.
Analysis
- Slight earnings growth expected in 2Q26. We expect Central Plaza Hotel (CENTEL) to report a net profit of Bt114m (+3.3% yoy, -89.4% qoq) for 2Q26. Top-line should come in at Bt5.8b (+3.3% yoy, -13.9% qoq), supported by resilient performance from both hotel and food businesses. The earnings growth is mainly driven by the continued strong performance of its hotels in the Maldives, which saw a robust 69% yoy growth in RevPar. The strong RevPar at the Maldives is contributed by a yoy uplift in occupancy rate from the wholesale market. Moreover, the two new hotels at the Maldives have been ramping up well in terms of room rate and occupancy rate. Meanwhile, the RevPar of hotels in Thailand still saw a 3% yoy growth despite the impact of the US-Iran war. We expect the share of profit to decline yoy, primarily due to the disposal of assets in Osaka and weaker hotel performance in Dubai amid the ongoing war. As a result, we expect margins to remain flat yoy.
BUY (Maintained)
Current price:
Target price:
Upside:
Bt38.25
Bt45.00
+17.6%
Analyst
Analyst
Nonpawit Vathanadachakul
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at the following link: https://research-api.uobkayhian.com/assets/disclaimer/df64a6ea-7980-447c-ae9e-fd19b93257dc, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
