Company Coverage
Siam Global House (GLOBAL TB): 2Q26: Results Beat; Gross Margin Hits All-time High
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Bt7.60
Bt9.00
+18.40%
Bt8.50
Analyst
Highlights
- GLOBAL reported a strong net profit of Bt955m (+84% yoy, +19% qoq), beating our and market expectations by 30% and 38% respectively.
- Gross margin reached a record high of 31.6%, well above our expectation.
- Financing costs are expected to continue declining in 2H26, while gross margin is likely to keep expanding yoy, helping offset a soft SSSG.
- Maintain BUY with a higher target price of Bt9.00 (from Bt8.50).
Analysis
- Results beat. Siam Global House (GLOBAL) reported a net profit of Bt955m (+84% yoy, +19% qoq), beating our and market expectations by 30% and 38% respectively. The earnings beat was mainly driven by a stronger-than-expected gross margin and equity income, as well as lower-than-expected interest expenses.
- Gross margin reaches record high. Gross margin reached a record high. 2Q26 results were driven by: a) sales remaining flat yoy, as continued negative SSSG offset new store expansion, b) gross margin reached a record high of 31.6% (+617bp yoy), well above our expectation of 28.2%, driven by price increases implemented since Mar 26, the use of low-cost inventory, and a higher contribution from house-brand products, and c) SG&A-to-sales increased 62bp yoy to 20.7%, which was slightly above expectations. However, these were offset by: a) a 49.6% yoy decline in interest expenses following short-term debt repayment; and b) higher equity income supported by the recovery of operations in Myanmar.
- Store rollout plan is achievable. During 2Q26, GLOBAL expanded its domestic footprint by opening two branches in Phitsanulok (Wang Thong) and Ubon Ratchathani (Trakan Phuet Phon). The company remains on track to fulfil its FY26 guidance of five new domestic store openings, with two remaining locations slated for 2H26 – this is an outcome we consider highly realistic. In contrast, execution of the two-store expansion plan in Indonesia faces higher operational challenges.
Highlights
- GLOBAL reported a strong net profit of Bt955m (+84% yoy, +19% qoq), beating our and market expectations by 30% and 38% respectively.
- Gross margin reached a record high of 31.6%, well above our expectation.
- Financing costs are expected to continue declining in 2H26, while gross margin is likely to keep expanding yoy, helping offset a soft SSSG.
- Maintain BUY with a higher target price of Bt9.00 (from Bt8.50).
Analysis
- Results beat. Siam Global House (GLOBAL) reported a net profit of Bt955m (+84% yoy, +19% qoq), beating our and market expectations by 30% and 38% respectively. The earnings beat was mainly driven by a stronger-than-expected gross margin and equity income, as well as lower-than-expected interest expenses.
- Gross margin reaches record high. Gross margin reached a record high. 2Q26 results were driven by: a) sales remaining flat yoy, as continued negative SSSG offset new store expansion, b) gross margin reached a record high of 31.6% (+617bp yoy), well above our expectation of 28.2%, driven by price increases implemented since Mar 26, the use of low-cost inventory, and a higher contribution from house-brand products, and c) SG&A-to-sales increased 62bp yoy to 20.7%, which was slightly above expectations. However, these were offset by: a) a 49.6% yoy decline in interest expenses following short-term debt repayment; and b) higher equity income supported by the recovery of operations in Myanmar.
- Store rollout plan is achievable. During 2Q26, GLOBAL expanded its domestic footprint by opening two branches in Phitsanulok (Wang Thong) and Ubon Ratchathani (Trakan Phuet Phon). The company remains on track to fulfil its FY26 guidance of five new domestic store openings, with two remaining locations slated for 2H26 – this is an outcome we consider highly realistic. In contrast, execution of the two-store expansion plan in Indonesia faces higher operational challenges.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Bt7.60
Bt9.00
+18.40%
Bt8.50
Analyst
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