Company Coverage
Home Product Center (HMPRO: TB) Low-cost Inventory To Continue Supporting Margins
BUY (Maintained)
Current price:
Target price:
Upside:
Bt6.70
Bt8.00
19.40%
Analyst
Highlights
- The tone at the analyst meeting was slightly positive, with low-cost inventory expected to continue supporting margins in 3Q26.
- The consumer spending environment has improved modestly following the launch of the Thai Help Thai Plus copayment scheme, while concerns over geopolitical tensions have gradually eased.
- Maintain BUY with a target price of Bt8.00, based on a 12-month forward PE of 18x, in line with HMPRO’s five-year average of -1SD.
Analysis
- The tone at the analyst meeting was slightly positive, with low-cost inventory expected to continue supporting margins in 3Q26. Management
noted that the consumer spending environment has improved modestly following the launch of the Thai Help Thai Plus copayment scheme, while concerns over geopolitical tensions have gradually eased. As a result, the company continues to target slight sales growth in 2026 and expects gross margin to expand 70-100bp for 2026.
- Management confident about gross margin outlook. Management remains confident that gross margin will continue to improve yoy throughout
2H26, although it is likely to moderate from the exceptionally strong level seen in 2Q26. In particular, 3Q26 should still benefit from low-cost inventory purchased earlier, providing further margin support. Mega Home is expected to deliver stronger gross margin expansion than HomePro during 3Q26.
- SSSG improved in Jul 26. HomePro’s Jul 26 SSSG came in at -1.5% yoy. However, management indicated that around 70bp of the decline was due to cannibalisation from the newly opened Samui branch. Excluding this impact, HomePro's SSSG would have been only slightly negative, while Mega Home continued to post slightly positive SSSG, supported by higher selling prices and resilient demand from technician customers.
- More details on 2Q26 results. Home Product Center (HMPRO) reported a solid 2Q26 net profit growth of 14% yoy, driven by HomePro's earnings growth of 9-10% yoy and an impressive 60% yoy increase from Mega Home. Management highlighted that basket size turned positive across both HomePro and Mega Home, reflecting improving customer spending and a healthier sales mix, while house brand contribution and e-commerce sales continued to improve.
Company Coverage
Home Product Center (HMPRO: TB) Low-cost Inventory To Continue Supporting Margins
Highlights
- The tone at the analyst meeting was slightly positive, with low-cost inventory expected to continue supporting margins in 3Q26.
- The consumer spending environment has improved modestly following the launch of the Thai Help Thai Plus copayment scheme, while concerns over geopolitical tensions have gradually eased.
- Maintain BUY with a target price of Bt8.00, based on a 12-month forward PE of 18x, in line with HMPRO’s five-year average of -1SD.
Analysis
- The tone at the analyst meeting was slightly positive, with low-cost inventory expected to continue supporting margins in 3Q26. Management
noted that the consumer spending environment has improved modestly following the launch of the Thai Help Thai Plus copayment scheme, while concerns over geopolitical tensions have gradually eased. As a result, the company continues to target slight sales growth in 2026 and expects gross margin to expand 70-100bp for 2026.
- Management confident about gross margin outlook. Management remains confident that gross margin will continue to improve yoy throughout
2H26, although it is likely to moderate from the exceptionally strong level seen in 2Q26. In particular, 3Q26 should still benefit from low-cost inventory purchased earlier, providing further margin support. Mega Home is expected to deliver stronger gross margin expansion than HomePro during 3Q26.
- SSSG improved in Jul 26. HomePro’s Jul 26 SSSG came in at -1.5% yoy. However, management indicated that around 70bp of the decline was due to cannibalisation from the newly opened Samui branch. Excluding this impact, HomePro's SSSG would have been only slightly negative, while Mega Home continued to post slightly positive SSSG, supported by higher selling prices and resilient demand from technician customers.
- More details on 2Q26 results. Home Product Center (HMPRO) reported a solid 2Q26 net profit growth of 14% yoy, driven by HomePro's earnings growth of 9-10% yoy and an impressive 60% yoy increase from Mega Home. Management highlighted that basket size turned positive across both HomePro and Mega Home, reflecting improving customer spending and a healthier sales mix, while house brand contribution and e-commerce sales continued to improve.
BUY (Maintained)
Current price:
Target price:
Upside:
Bt6.70
Bt8.00
19.40%
Analyst
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