Company Coverage
Central Pattana (CPN TB) - Central Khonkaen Campus: A New Lifestyle Destination In Isan
BUY (Maintained)
Current price:
Target price:
Upside:
Bt61.75
Bt80.00
+29.55%
Analyst
Highlights
- We visited Central Khonkaen Campus and came back with a slightly positive view on the project.
- 3Q26 earnings outlook remains promising, as we expect core earnings to increase by 10-15% yoy, driven mainly by the strong rental business.
- We remain confident in our 2026 earnings forecast of +15% yoy growth despite the impact from Bangkok’s flooding situation.
- Maintain BUY with a target price of Bt80.00, based on SOTP methodology.
Analysis
- Central Khonkaen Campus (KKC) started operations in May 26, with 62,000 sqm of GBA and 20,000 sqm of NLA, representing less than 1% of Central Pattana’s (CPN) total NLA. KKC is CPN’s second shopping mall in Khonkaen and is positioned differently from the existing Central Khonkaen (KKN). The key differences between the two malls are: a) Different target customers and tenant mix: KKC targets teenagers, young professionals and medical staff, given its location near Khonkaen University and Srinagarind Hospital. In contrast, KKN has a more mass-market customer base. KKC also has a higher exposure to food tenants, while KKN has a more balanced tenant mix across food, fashion and other categories; and b) Different mall size and positioning: KKC has 20,000 sqm of NLA, compared with 47,000 sqm for KKN.
- Limited cannibalisation of Central Khonkaen. KKN’s traffic declined during the first two months after KKC opened, but has since recovered to only 1% below the pre-opening level. This suggests that the two malls are attracting different customer segments and that the long-term cannibalisation impact on KKN should be limited. We believe Khonkaen has strong fundamentals to support two shopping malls, given its role as a key economic hub in the northeast. The city is a regional centre for government institution, healthcare and education, supported by Srinagarind Hospital and five universities. Khonkaen is also developing its MICE and tourism potential, with around 5m visitors per year, while its airport is the largest in the northeast. The city also has a growing industrial base, including manufacturing facilities and food and beverage businesses, which support employment and household income. In our view, these structural demand drivers provide a sufficient catchment base for CPN to operate two shopping malls, particularly as KKC and KKN have different target customers and tenant positioning.
Highlights
- We visited Central Khonkaen Campus and came back with a slightly positive view on the project.
- 3Q26 earnings outlook remains promising, as we expect core earnings to increase by 10-15% yoy, driven mainly by the strong rental business.
- We remain confident in our 2026 earnings forecast of +15% yoy growth despite the impact from Bangkok’s flooding situation.
- Maintain BUY with a target price of Bt80.00, based on SOTP methodology.
Analysis
- Central Khonkaen Campus (KKC) started operations in May 26, with 62,000 sqm of GBA and 20,000 sqm of NLA, representing less than 1% of Central Pattana’s (CPN) total NLA. KKC is CPN’s second shopping mall in Khonkaen and is positioned differently from the existing Central Khonkaen (KKN). The key differences between the two malls are: a) Different target customers and tenant mix: KKC targets teenagers, young professionals and medical staff, given its location near Khonkaen University and Srinagarind Hospital. In contrast, KKN has a more mass-market customer base. KKC also has a higher exposure to food tenants, while KKN has a more balanced tenant mix across food, fashion and other categories; and b) Different mall size and positioning: KKC has 20,000 sqm of NLA, compared with 47,000 sqm for KKN.
- Limited cannibalisation of Central Khonkaen. KKN’s traffic declined during the first two months after KKC opened, but has since recovered to only 1% below the pre-opening level. This suggests that the two malls are attracting different customer segments and that the long-term cannibalisation impact on KKN should be limited. We believe Khonkaen has strong fundamentals to support two shopping malls, given its role as a key economic hub in the northeast. The city is a regional centre for government institution, healthcare and education, supported by Srinagarind Hospital and five universities. Khonkaen is also developing its MICE and tourism potential, with around 5m visitors per year, while its airport is the largest in the northeast. The city also has a growing industrial base, including manufacturing facilities and food and beverage businesses, which support employment and household income. In our view, these structural demand drivers provide a sufficient catchment base for CPN to operate two shopping malls, particularly as KKC and KKN have different target customers and tenant positioning.
BUY (Maintained)
Current price:
Target price:
Upside:
Bt61.75
Bt80.00
+29.55%
Analyst
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