Company Coverage
Home Product Center (HMPRO TB) - 3Q26: Results In Line; Impressive Margin Expansion
BUY (Maintained)
Current price:
Target price:
Upside:
Bt6.40
Bt8.00
+25.00%
Analyst
Highlights
- HMPRO reported 3Q26 net profit of Bt1.32b (+1% yoy,-17% qoq), in line with our and consensus estimates.
- October SSSG remained promising, with HomePro at +6.5% yoy and Mega Home at +11.5% yoy, driven by post-flood demand for home repairs.
- With store expansion slowing to around five stores per year, earnings growth will be driven primarily by gross margin improvement.
- Maintain BUY with a target price of Bt8.00, based on 2027F PE of 17x. The stock offers an attractive valuation, with a 5.8% dividend yield and 14x PE.
Analysis
- Results in line. Home Product Center (HMPRO) reported 3Q26 net profit of Bt1.32b (+1% yoy, -17% qoq), in line with our and consensus estimates. 9M26 earnings accounted for 73% of our 2026 forecast, in line with the same period last year. Positive factors in 3Q26 include: a) a higher gross profit margin from an increased private brand sales mix of 22.2%, above management’s target of 22.0%, b) improved product assortment, and c) lower interest expenses. These helped offset: a) weak SSSG of -2.9% yoy for HomePro and -0.2% yoy for Mega Home, and b) higher SG&A expenses from increased depreciation following store expansion.
Highlights
- HMPRO reported 3Q26 net profit of Bt1.32b (+1% yoy,-17% qoq), in line with our and consensus estimates.
- October SSSG remained promising, with HomePro at +6.5% yoy and Mega Home at +11.5% yoy, driven by post-flood demand for home repairs.
- With store expansion slowing to around five stores per year, earnings growth will be driven primarily by gross margin improvement.
- Maintain BUY with a target price of Bt8.00, based on 2027F PE of 17x. The stock offers an attractive valuation, with a 5.8% dividend yield and 14x PE.
Analysis
- Results in line. Home Product Center (HMPRO) reported 3Q26 net profit of Bt1.32b (+1% yoy, -17% qoq), in line with our and consensus estimates. 9M26 earnings accounted for 73% of our 2026 forecast, in line with the same period last year. Positive factors in 3Q26 include: a) a higher gross profit margin from an increased private brand sales mix of 22.2%, above management’s target of 22.0%, b) improved product assortment, and c) lower interest expenses. These helped offset: a) weak SSSG of -2.9% yoy for HomePro and -0.2% yoy for Mega Home, and b) higher SG&A expenses from increased depreciation following store expansion.
BUY (Maintained)
Current price:
Target price:
Upside:
Bt6.40
Bt8.00
+25.00%
Analyst
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This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
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