Home Product Center "Price hikes to drive margin expansion in Q226E" (Sell)

研报英文原文证据摘录

Home Product Center "Price hikes to drive margin expansion in Q226E" (Sell)

Global Research

10 July 2026ab

Home Product Center Equities

ThailandPrice hikes to drive margin expansion in Q226E

Retailers, Specialty

12-month rating Sell

Earnings rebound driven by pricing and margin expansion

Home Pro is expected to report its Q226 results on 28 July. We forecast net profit of 12m price target Bt5.20

Bt1.5bn, up 9% QoQ and 10% YoY, reflecting the benefit of pricing actions

implemented to offset cost inflation, broadly in line with management guidance

Price (09 Jul 2026) Bt6.45

provided at its Q1 analyst briefing. Revenue is expected to grow 3% YoY, supported

primarily by store expansion rather than underlying demand. We forecast HomePro RIC: HMPRO.BK BBG: HMPRO TB

same-store sales growth of -0.5%, while Mega Home should post a modest 2-3%

Trading data and key metrics

increase. During the quarter, the company opened one standalone HomePro store and

52-wk range Bt7.90-5.80

one HomePro-Mega Home hybrid extension.

Market cap. Bt84.8b/US$2.54b

Margin strength masks soft underlying demand Shares o/s 13,151m (ORD)

Free float 43%

The key feature of the quarter is likely to be margin expansion. We estimate gross

margin to widen by 150bps YoY, driven by higher selling prices and continued private- Avg. daily volume ('000) 35,556

label penetration across both HomePro and Mega Home. This should more than offset Avg. daily value (m) Bt220.5

operating cost pressures, with SG&A-to-sales expected to rise 100bps YoY due to higher Common s/h equity (12/26E) Bt25.6b

depreciation and personnel expenses associated with new stores. Management P/BV (12/26E) 3.3x

indicated that basket size improved during the quarter while traffic was flat to slightly Net debt to EBITDA (12/26E) 2.0x