Thailand's consumer spending is recovering as tourists return. Here's a prime beneficiary


Singapore Depository Receipts

By Beansprout • 13 Aug 2023 • 0 min read

CP All operates Thailand’s largest convenience store chain (CVS), with more than 14,000 corporate and franchisee 7-Eleven stores.

CP All Thai SDR cover
In this article

This post was created in partnership with SGX. All views and opinions expressed in this article are Beansprout's objective and professional opinions. 


  • CP All (SGX: TCPD) operates Thailand’s largest convenience store chain (CVS), with more than 14,000 corporate and franchisee 7-Eleven stores. Together with stores operated under the Lotus’ Go Fresh brand, CP All has a domineering market share of 73% in Thailand’s CVS market. 
  • With the acquisition of Makro, Thailand’s largest cash-and-carry operator in 2013, CP All has diversified into the retail business. The company further expanded into the retail market through the acquisition of Lotus Thailand and Malaysia in 2021. 
  • CP All has consistently added more than 700 new convenience stores per year historically, and targets to continue to do the same in 2023. There is also scope for same store sales growth to improve with increased consumption spending with the return of foreign tourists.
  • Outside of Thailand, CP All also holds the franchise rights to manage 7-Eleven stores in Cambodia and Laos, and targets to open up to 100 stores in Cambodia and to set up its first store in Laos in 2023. 

What happened?

CP All Singapore Depository Receipts was recently launched on the Singapore Exchange, and trades under the stock code SGX: TCPD.

What this means is that retail investors in Singapore will be able to gain access to CP All in the same way that they are buying and selling a Singapore stock.

Let us find out more about what CP All does, and if it is worth adding this stock to your watchlist.

What you need to know about CP All (SGX: TCPD)

#1 - CP All operates Thailand's largest convenience store chain

CP All operates Thailand’s largest convenience store chain (CVS) and the world’s third-largest 7-Eleven chain after Japan and the US. It also holds the franchise rights from 7-Eleven, Inc. to manage 7-Eleven stores in Cambodia and Laos.  Its controlling shareholder is CP Group, with a 35.3% stake. 

As of March 2023, the company operates 14,047 stores in Thailand under a corporate and franchisee system and 54 stores in Cambodia. CP All takes the lion’s share of 73% of Thailand’s convenience stores business, comprising 64% for 7-Eleven and 9% for Lotus’ Go Fresh.

CP All number of stores@2x(1).png
Source: Company data


#2 - CP All has expanded into the wholesale retail and grocery retail markets

CP All expanded into the wholesale retail market through the acquisition of Siam Makro Public Company Ltd (Makro), Thailand’s leading cash-and-carry operator, for US$6.6bn in 2013. 

The company further expanded into the grocery retail market through the acquisition of Lotus Thailand and Malaysia, a leading retail operator in 2021. 

With these acquisitions, CVS remains the biggest contributor to the group, accounting for 40.6% of revenue. Grocery wholesaling and retailing under Makro and Lotus contributed 28% and 25% of revenue, respectively. About 94% of CP All’s revenue is derived from Thailand.

Source: Company data


What are the drivers of CP All?

#1 - Retail sales at convenience stores have recovered strongly

Retail sales at convenience stores have grown faster than overall retail sales. Increased mobility among the residents and foreign tourist recovery bode well for consumption demand. 

In addition, the recovery of international tourism sector is a key driver. Tourist arrivals in 2019 was 40m in 2019, and contributed to 11.9% of Thailand’s GDP. The number of international tourists plummeted to just 430,000 in 2021 and rebounded to 11.2m in 2022, helped by the easing of pandemic-related travel restrictions in many countries from second half of the year. The reopening of China in early 2023 could draw more tourists and lift retail spending in Thailand. 

Source: Bank of Thailand


#2 - CP All has reported consistent new store opening 

In Thailand, CP All has continued to build its store network and plans to add net 700 stores in 2023. At the same time, the 7-Eleven stores are adding food and beverage options, offering a range of  fresh and frozen food, ready-to-cook, ready-to-eat, and quick service retail selection. 

Same store sale growth fell during FY20 and FY21 when the number of customers and tourists plummeted and the operating hours were shortened. It rebounded strongly by 15.9% in FY22 and continued to improve in 1Q23 (+8.0% yoy). There could be further room for growth as daily revenue per store in 1Q23 is still 4.8% below pre-Covid level in FY19.

Source: Company data


#3 - CP All is shifting towards food items in its product offering

CP All's strategy is to gradually shift its product mix towards food items in its product offering. The share of food segment, which comprises ready-to-eat foods, processed food and beverages, has continued to rise, accounting for 74.5% of revenue in 1Q23. This is to cater to growing needs for ready-to-eat and ready-to-cook meals, food delivery services, and to shop nearer to home.

On the other hand, non-food segment has seen greater margin expansion (+0.5% pt in 1Q23). Non-food segment includes personal care, single-use items, household and cigarettes.

Cp All food vs non-food revenue@2x.png
Source: Company data


What are the risks of CP All?

Apart from the risks relating to Thai SDRs, the key risks for CP All would be the impact from increase in labour costs and higher net gearing.

#1 - Potentially higher labour costs

Employee benefits made up 32% of the selling and general administrative expenses. However, we note that these accounted for only 6.4% of sales in FY22. A key downside risk is if there was a significant increase in the minimum wage, which was a promise by various political groups at recent election campaigns.

Source: Company data


#2 - Impact from higher borrowing costs

The acquisition of Lotus resulted in higher net gearing for the group. Net debt to equity rose to 2.2x in FY20. This has since improved to 1.3x as debts are being pared down. Net debt to EBITDA have also eased to 5.4x in FY22. Interest coverage, which is EBITDA to interest expense, edged up slightly to 2.2x.

How can investors gain access to CP All?

The CP All SDR trades on the SGX under the stock code TCPD.

SDRs trade on the Singapore Exchange in Singapore Dollars (SGD). The same trading hours for the Singapore Exchange apply to the trading of SDRs, which is 9 am to 5.16 pm SGT currently. 

SDRs are tradable by all investor types, as they are classified as Excluded Investment Products (EIP). While this product is available to anyone with a basic understanding of financial instruments, do make sure that you are aware of the product characteristics and risks before you invest in it. 

You will be able to buy Singapore Depository Receipts directly through a stock trading platform which offers trading on the Singapore Exchange. 

Click here to read our earlier article explaining what are Singapore Depository Receipts. 

For a more detailed analysis on CP All, download the full report here. 

You can also find more resources at the SGX product page.

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