President Chain Store Earnings: Convenience Store Segment Lifted Top-Line and Profit Growth

Narrow-moat President Chain Store Corporation’s first-quarter results largely met our expectations, with convenience store businesses in Taiwan and the Philippines driving top-line and profit growth. We expect a product mix shift in Taiwan 7-Eleven and new store openings in the Philippines to continue driving top-line momentum for PCSC during 2024. We keep our 2024-28 forecasts unchanged and retain our fair value estimate of TWD 276 per share, which implies 27 times 2024 P/E, 6 times enterprise value/EBITDA, and 3.2% dividend yield. We think the shares are fairly valued currently.