Operating Margin - Central Pattana PCL (SET:CPN)

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Price: 54.25 THB -2.25%

Market Cap: 243.5B THB

45.5%

Current

39%

Average

25.6%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

45.5%

Operating Profit

22.2B

Revenue

48.9B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
TH		Central Pattana PCL SET:CPN	243.5B THB	45%
DE		Vonovia SE XETRA:VNA	20.4B EUR	39%
HK	S	Swire Properties Ltd HKEX:1972	120.3B HKD	50%
BM		Hongkong Land Holdings Ltd SGX:H78	15.4B USD	39%
CN		China Resources Mixc Lifestyle Services Ltd HKEX:1209	97.9B HKD	27%
CH		Swiss Prime Site AG SIX:SPSN	9.8B CHF	66%
IL		Azrieli Group Ltd TASE:AZRG	39.7B ILS	59%
CN		Zhejiang China Commodities City Group Co Ltd SSE:600415	86.6B CNY	28%
PH	S	SM Prime Holdings Inc XPHS:SMPH	680.8B PHP	50%
SG		Capitaland Investment Ltd SGX:9CI	13.5B SGD	24%
SE	S	Sagax AB STO:SAGA A	90.9B SEK	80%

Central Pattana PCL
Glance View

Market Cap

243.5B THB

Industry

Real Estate

Central Pattana Public Company Limited (CPN) stands as a cornerstone in Thailand's retail and real estate landscape, representing the growth and urbanization wave sweeping through Southeast Asia. Born from the dreams of the Chirathivat family, which also founded Thailand's largest retail chain, Central Group, CPN has carved a niche as the country's most prominent retail property developer. Its journey began in 1980 with the establishment of its first shopping center and since then, it has expanded its portfolio to include some of the most iconic shopping malls in Thailand, such as CentralWorld in Bangkok, and other developments in key cities across the nation. These aren't just commercial spaces; they're vibrant urban centers that blend leisure, shopping, and lifestyle, setting a benchmark for retail experiences in the region. Central Pattana's business model hinges on a multifaceted approach to development and revenue generation. At its core, the company operates a mix of assets—shopping centers, office buildings, hotels, and residential projects. By integrating these diverse components, CPN creates a mixed-use ecosystem that thrives on synergy. The shopping centers attract footfall with a blend of retail, dining, and entertainment options, generating revenue from rental agreements with tenants. Additionally, the company's strategic positioning often links its projects to transport connectivity, further driving visitor numbers. Beyond leasing space, CPN also benefits from management and promotional fees, ensuring a steady stream of income. This business strategy not only secures revenue but also aligns with broader urban development trends, making Central Pattana a key player in shaping the modern Thai cityscape.

View CPN Analysis

CPN Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

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Central Pattana PCL
SET:CPN