Highlights

• GLOBAL reported 3Q26 net profit of Bt551m, spiking 40% yoy and 10% above our and consensus estimates due to a higher-than-expected margin.
   
• House brand sales accelerated, reflecting consumers’ increasing preference for lower-priced products amid a sluggish economic recovery.
   
• Maintain BUY with a target price of Bt9.00, based on 2027F PE of 17x. 
   

Analysis

• Results beat. Siam Global Houses (GLOBAL) reported 3Q26 net profit of Bt551m (+40% yoy, -42% qoq), 10% above our and consensus estimates, due to a higher-than-expected gross profit margin. House brand sales accelerated despite a decline in overall sales, reflecting consumers’ increasing preference for lower-priced house brand products amid a limited economic recovery. This drove a stronger-than-expected improvement in gross profit margin.
   
• 3Q26 operating highlights. a) Revenue declined 2% yoy, with SSSG of -6.94% yoy; b) gross profit margin increased by 214bps yoy to 28.6% (vs our estimate of 27.8%), driven by a higher house brand sales contribution of 29.0% (3Q25: 27.0%; 2Q26: 27.5%); c) other income increased 11% yoy, supported by Bt19m in insurance claim proceeds; d) SG&A-to-sales increased by 69 bps yoy to 22.8%, mainly due to higher depreciation expenses following store expansion; e) interest expenses remained flat qoq; and f) share of profit from investments increased by 117% yoy, supported by improved operations in Myanmar.