Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

Pi Research

Thai Equity - Bottom-up - Equities

Leading, full-service investment firm in Thailand

Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

Moreover, our new research team tailored for institutional clients to focus on mid to small cap of Thai equities and trading strategies. Our services offered to our premium clients also include arrangement of company or site visits to with the managements of Thai listed companies.

Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

Equity Bottom-Up

<ul>
<li>Maintain BUY recommendation for HMPRO with a target price of Bt17.HMPRO’s 2Q22 net profit came in at Bt1.5bn(+6%YoY, +1%QoQ),in-line with our forecast and BB consensus estimated. The YoY and QoQ</li>
<li>2Q22 results in-line with our forecast HMPRO reported a net profit of Bt1.5bn in 2Q22 (+6%YoY, +1%QoQ). The 1H22 result accounted for 51% of our 2022E.</li>
<li>The YoY and QoQ growth in 2Q22 earnings supported by an increased in promotional activities with vendors in both at stores and online channels,higher rental income and new store expansion(BangnaKm.1)</li>
</ul>


Maintain BUY recommendation for HMPRO with a target price of Bt17.HMPRO’s 2Q22 net profit came in at Bt1.5bn(+6%YoY, +1%QoQ),in-line with our forecast and BB consensus estimated. The YoY and QoQ
2Q22 results in-line with our forecast HMPRO reported a net profit of Bt1.5bn in 2Q22 (+6%YoY, +1%QoQ). The 1H22 result accounted for 51% of our 2022E.
The YoY and QoQ growth in 2Q22 earnings supported by an increased in promotional activities with vendors in both at stores and online channels,higher rental income and new store expansion(BangnaKm.1)


HMPRO : 2Q22 Earnings to Grow YoY as Expected

<ul>
<li>Maintain BUY recommendation for HMPRO with a target price of Bt17. We expect the company to report 2Q22 net profit at Bt1.5bn(+5%YoY)and flat QoQ, stronger than peers. The YoY growth </li>
<li>Expect 2Q22 earnings grow YoY and flat QoQ We expect 2Q22 net profit to be at Bt1.5bn (+5%YoY, -0.5%QoQ) as a result of higher rental income and rental margin expansion.</li>
<li>We expect HMPRO to post 2Q22 revenue at Bt16.7bn (+2%YoY,+4%QoQ),driven by SSSG of +0.7% (mainly from HomePro Malaysia),new stores expansion in the past 12 months and rental income surge 45%YoY.</li>
</ul>


Maintain BUY recommendation for HMPRO with a target price of Bt17. We expect the company to report 2Q22 net profit at Bt1.5bn(+5%YoY)and flat QoQ, stronger than peers. The YoY growth 
Expect 2Q22 earnings grow YoY and flat QoQ We expect 2Q22 net profit to be at Bt1.5bn (+5%YoY, -0.5%QoQ) as a result of higher rental income and rental margin expansion.
We expect HMPRO to post 2Q22 revenue at Bt16.7bn (+2%YoY,+4%QoQ),driven by SSSG of +0.7% (mainly from HomePro Malaysia),new stores expansion in the past 12 months and rental income surge 45%YoY.


<ul>
<li>Yesterday analyst meeting came out with a neutral tone. We reiterate our BUY rating for HMPRO with a target price of Bt17.0, which is derived from 35xPE’22E, a 40% premium </li>
<li>In 1Q22, HMPRO’s SSSG was at 3.1% and GPM expanded by 26bps,which is in-line with our assumption and management targets (SSSG close to Thailand GDP growth and GPM +20bps YoY).</li>
<li>We expect 2Q22 earnings to continue to grow YoY and flat QoQ supported by demand for air conditioner and promotional activities(Homepro Super Expo)together with restoring consumer confidence following an increase</li>
</ul>


Yesterday analyst meeting came out with a neutral tone. We reiterate our BUY rating for HMPRO with a target price of Bt17.0, which is derived from 35xPE’22E, a 40% premium 
In 1Q22, HMPRO’s SSSG was at 3.1% and GPM expanded by 26bps,which is in-line with our assumption and management targets (SSSG close to Thailand GDP growth and GPM +20bps YoY).
We expect 2Q22 earnings to continue to grow YoY and flat QoQ supported by demand for air conditioner and promotional activities(Homepro Super Expo)together with restoring consumer confidence following an increase


<ul>
<li>With a limited upside to our target price and concern over decreasing people purchasing power following a rise in inflation, we downgrade our recommendation from BUY to HOLD </li>
<li>We expect HMPRO to report 1Q22 net profit at Bt1.49bn (+9%YoY, -16%QoQ),</li>
<li>YoY growth will be supported by solid demand for WFH products, government stimulus scheme (Shop Dee Mee Khuen in Jan –15 Feb 2022), and solid revenue growth from Mega Home</li>
</ul>


With a limited upside to our target price and concern over decreasing people purchasing power following a rise in inflation, we downgrade our recommendation from BUY to HOLD 
We expect HMPRO to report 1Q22 net profit at Bt1.49bn (+9%YoY, -16%QoQ),
YoY growth will be supported by solid demand for WFH products, government stimulus scheme (Shop Dee Mee Khuen in Jan –15 Feb 2022), and solid revenue growth from Mega Home


HMPRO: Expect Strong Earnings Growth YoY in 1Q22

<ul>
<li>Yesterday analyst meeting came out with a positive tone. We reiterate our BUY rating for HMPRO with a target price of Bt17.0(+5%from previous TP),which is derived from 35xPE’22E, a 40%</li>
<li>In 2022, HMPRO plans to open 6 stores comprise of one store for Homepro large store format and 5 stores for Mega home and one HMPRO’s store re-location.</li>
<li>We believe that SSSG continues to positive at 5%in 2022 and 4% in 2023 supported by new products launch together with promotional activities such as Homepro Day, Homepro Super Expro</li>
</ul>


Yesterday analyst meeting came out with a positive tone. We reiterate our BUY rating for HMPRO with a target price of Bt17.0(+5%from previous TP),which is derived from 35xPE’22E, a 40%
In 2022, HMPRO plans to open 6 stores comprise of one store for Homepro large store format and 5 stores for Mega home and one HMPRO’s store re-location.
We believe that SSSG continues to positive at 5%in 2022 and 4% in 2023 supported by new products launch together with promotional activities such as Homepro Day, Homepro Super Expro


HMPRO: Store Expansion to Support 2022-23 Growth

Thailand

Home Product Center Public Company Limited is a retailer of building materials and home improvement products.

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Home Product Center (HMPRO TB)

HMPRO : 2Q22 Earnings to Grow YoY as Expected

Maintain BUY recommendation for HMPRO with a target price of Bt17. HMPRO’s 2Q22 net profit came in at Bt1.5bn (+6%YoY, +1%QoQ), in-line with our...

Pi Securities PCL, Thailand

HMPRO : Expect 2Q22 Earnings to Grow YoY

Maintain BUY recommendation for HMPRO with a target price of Bt17. We expect the company to report 2Q22 net profit at Bt1.5bn (+5%YoY) and flat...

Pi Securities PCL, Thailand

HMPRO: Unexciting Short-Term Earnings

Yesterday analyst meeting came out with a neutral tone. We reiterate our BUY rating for HMPRO with a target price of Bt17.0,which is derived from...

Pi Securities PCL, Thailand

HMPRO: Expect Strong Earnings Growth YoY in 1Q22

With a limited upside to our target price and concern over decreasing people purchasing power following a rise in inflation,we downgrade our...

Pi Securities PCL, Thailand

HMPRO: Store Expansion to Support 2022-23 Growth

Yesterday analyst meeting came out with a positive tone. We reiterate our BUY rating for HMPRO with a target price of Bt17.0 (+5% from previous...

Pi Securities PCL, Thailand

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