Home Product Center Public Company Limited, or HMPRO, maintains its 2026 growth targets, expecting sales to grow slightly by 1 to 3 percent year-on-year and aiming to lift gross margin by 70 to 100 basis points year-on-year through organic growth. It has trimmed its new store expansion plan to 9 branches from 10, under a capital expenditure budget of 6.0 to 7.0 billion baht, focusing on opening 6 Hybrid Store branches in the second half, each requiring around 200 to 300 million baht. Key second-half strategies also include supply chain management to reduce transport and warehouse costs, increasing the share of higher-margin private label products, and using data for targeted promotions. Meanwhile, same-store sales for HomePro in Thailand at the start of the third quarter were still down 1 to 2 percent year-on-year due to the economic slowdown and rainy season, while Mega Home was flat to slightly positive, and HomePro in Malaysia was down 5 to 7 percent year-on-year. Analysts have a neutral view, expecting third-quarter profit to decline quarter-on-quarter on seasonal factors but still grow year-on-year from expanding gross margin and lower interest expenses. They maintain a fair price of 8.00 baht and a buy recommendation, with the stock trading at a 2026 price-to-earnings ratio of 14.3 times, which is below minus two standard deviations of the five-year historical average.
Home Product Center Public Company LimitedCompany maintains growth targets and margin expansion plans, but same-store sales decline and reduced store expansion create mixed outlook.
