This can be seen from the NESDB’s latest announcement of GDP. The Thai economy in the second quarter grew by 2.5%, continually from a 2.3% growth in the first quarter, resulting in an average growth of 2.4% in the first half of Thailand’s GDP.
This was supported mainly by private consumption and exports that continued to expand. along with the recovery of tourism
The NESDB estimates that the Thai economy in the second half of the year will expand better than the first half. And the Thai economy is expected to expand this year at 2.7-3.2%, or the median is at 3%, expanding from 1.4% in 2021.
One of the places that reflects that the lifestyle of Thai people has returned to normal is “mall” which is the center of people of all ages At present, the atmosphere is bustling again. People come out shopping, take a walk, eat, and watch movies in the mall. until almost unable to find a parking space especially during weekends
“Central Group” It is considered a giant in the country’s retail and shopping center business under 2 major flagships: Central Pattana Public Company Limited or CPN Responsible for developing, managing and renting space Currently, there are 37 shopping centers under supervision, covering 18 provinces throughout Thailand.
andCentral Retail Corporation Public Company Limited or CRC responsible for the retail space within all department stores. As of the end of the first quarter of 2022 in Thailand, there were a total of 1,897 stores in 56 provinces and 121 stores in 41 provinces of Vietnam.
In Italy, there are nine department stores in eight cities. Combined, the three countries have a total retail space of 3,247,313 square meters and a plaza with a total rental space of 680,005 square meters.
which must be admitted that since the outbreak of COVID-19 Totally affected the retail business and department stores of Central Group. as in Thailand during the first epidemic The store was ordered to close Limited service time There are strict regulatory measures. The restaurant is forbidden to sit and eat at the restaurant. movie theater is closed until almost no one walks in the mall
Affects the performance of both CPN and CRC. still need to help partners with rental discounts Extending the time to pay the rent or suspend the payment first
But believe that now the bottom of the business has passed. When the epidemic situation According to CPN executives, the number of shopping center visitors in the first half of 2022 has returned to 90% and is confident that in the second half of the year the number of users will return to the same level as in 2019 before the disease occurred. Covid-19 epidemic
As for the opening of new projects, in the 4th quarter of this year, the community mall will be opened at Mache Thonglor and in 2023 the new shopping center West Ville Ratchaphruek will be opened in the fourth quarter of 2023, and 2-3 additional centers will be announced, most of which are in the provinces
On the CRC, the executives stated that Occupancy rate of real estate group commercial is at 86% Rental discounts are high-single digit from mid-double digit in Q1 and can be raised on renewal contracts as subscriber numbers start to return. Currently, service users are around 80% of 2019.
And there is a plan to open a department store under the new brand, Go! Mall, starting in Nakhon Si Thammarat province in the third quarter and aiming to open all 4 branches by 2022.
sideDAO Securities indicate that has revised CRC’s 2022 and 2023 net profit forecasts by 3% and 5% to 5.83 and 8.24 billion baht, respectively. The first half of 2022 operating results account for 46% of the new 2022 earnings forecast.
However has adjusted revenue in 2022 by 5% to 217 billion baht This was driven by the expansion of 8 branches of the hard line business and 2 stores in the fashion group in the second half of 2022, coupled with the fourth quarter, which is the high season of the retail business, which will see revenue growth. can both income from sales of goods and income from rental
Meanwhile, in the food business, the company will begin to expand hypermarkets in Vietnam, targeting to open 3 branches in 2023. For the commercial real estate business, there is still an upside from Vietnam that can recover again. and branch expansion in Thailand
CPN maintains its 2022 net profit forecast at 8.9 billion baht, an increase of 25% YoY. From the rental discount reduced to 15% from 2021 at the discount of 40%, while profits in the third quarter of 2022 will recover YoY as rental discounts continue to decline. and other businesses recover
Management expects the rental discount in the second half of 2022 to be lower than the first half of the year at 16%, due to the overall recovery of tourism, while the traffic in July is still moving forward. Increased continually by more than 80% from 85% in the second quarter, while continuing to expand both domestic and international plans