On Sep 1, CPAXT completed the acquisition of The Food Purveyor (TFP), one of Malaysia’s leading premium supermarket operators, for Bt13.1bn, gaining exposure to the fast-growing premium grocery segment in Malaysia. We expect the deal to be earnings neutral in 2026F, before becoming earnings accretive in 2027F (+2-3% of earnings). Following Habitat’s full opening on Aug 21, occupancy ramp-up remains the key earnings factor to monitor, with CPAXT maintaining its 2026F loss guidance at Bt500mn (~5% of earnings), which is already reflected in our forecasts. We maintain NEUTRAL with a mid-2027 DCF-based TP of Bt17 (WACC 7.5%, LTG 1.5%).
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CPAXT – The Food Purveyor acquisition completed
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The acquisition of TFP. CPAXT completed the acquisition of a 100% stake in The Food Purveyor (TFP), one of Malaysia’s leading premium supermarket operators, for MYR1.6bn (Bt13.1bn). The transaction, announced via the signing of a Share Sale and Purchase Agreement on March 3, 2026, was completed on September 1, 2026, following all regulatory approvals. TFP will be consolidated from September 2026 onwards and is expected to increase CPAXT’s B2C revenue by 4% (or 2% of CPAXT’s consolidated revenue) in 2027. The deal was funded through 80% debt and 20% internal cash flow, while net IBD/E is expected to remain at around 0.4x.
Who is TFP? TFP operates more than 50 premium supermarket stores under well-known brands including Village Grocer, B.I.G., BSC Fine Foods, OTK and The Food Merchant. It is estimated to hold around 30% market share in Malaysia’s premium grocery segment and serves predominantly affluent consumers. Combined with Lotus’s Malaysia’s ~70 stores, CPAXT will have a retail network of more than 120 stores across Malaysia.
Investment rationale. The acquisition gives CPAXT immediate exposure to Malaysia’s fast-growing premium grocery segment, which has delivered a CAGR of ~10% over the past four years, well above overall retail market growth of ~4%. The deal also broadens CPAXT’s portfolio beyond hypermarkets and wholesale operations, creating a more balanced mix across mass, mid-tier and premium segments. Management expects synergies from greater procurement scale and buying power, private-label expansion, supply chain optimization and the transfer of premium retail know-how. CPAXT also plans to leverage existing businesses in Malaysia, including Lucky Frozen, to enhance sourcing efficiency and supplier negotiations. Importantly, TFP’s founders and management team will remain in place, supporting a smooth integration process.
Slight earnings accretive from TFP; Habitat losses remain a key focus. We estimate the acquisition was completed at an implied valuation of ~28x PE, compared with 26-38x PE (32x on average) for Malaysian retail peers MR DIY and 99 Speedmart at the time of the announcement. We expect the deal to be earnings neutral in 2026F due to acquisition-related expenses and interest costs, before turning earnings accretive in 2027F, contributing Bt160-260mn or 2-3% of CPAXT’s earnings after funding costs.
Looking ahead, Habitat remains a key earnings factor to monitor following its full opening on August 21. CPAXT kept its 2026 loss guidance at Bt500mn (Bt100mn in 1H26 and Bt400mn in 2H26), which is included in our forecasts (-5% of our 2026F earnings). At launch, office occupancy was 30%, while commercial occupancy reached 70%, comprising 50% fixed-rent tenants and 20% temporary tenants with lower rental rates. CPAXT targets commercial occupancy of 90% by end-2026 through the addition of 20% fixed-rent tenants, with fixed-rent occupancy expected to reach 85% within 12 months.
Key risks are changes in government policies and purchasing power. Key ESG risks are energy & waste management, sustainable products (E) and product quality management, labor practices and data privacy (S).