Home Product Center Public Company Limited, or HMPRO, reported second-quarter net profit for 2026 of 1.594 billion baht, up 14.0 percent from the same period last year. Total revenue came in at 18.055 billion baht, up 3.4 percent from a year earlier, supported by accelerating sales of cooling appliances amid extremely hot weather in April. Gross profit margin improved to 27.73 percent from 25.82 percent last year, helped by product mix management and the company's own brands. Selling and administrative expenses as a percentage of sales rose to 20.61 percent from 19.47 percent. Finance costs fell by 14.20 million baht due to refinancing debentures at lower interest rates. For July, total sales were close to the second-quarter level. HomePro's same-store sales growth was slightly negative in the low single digits, compared with minus 1.0 percent in the second quarter, while Mega Home remained slightly positive, compared with plus 1.4 percent in the second quarter. However, the overall third quarter is likely to slow because the rainy season is a low season. Gross profit margin is expected to improve from 26.78 percent a year earlier but soften from 27.73 percent in the second quarter after costs of some products increased. Selling and administrative expenses as a percentage of sales are expected to keep rising from 20.6 percent and stay elevated through the first quarter of 2027 because of plans to open about seven more branches in the second half of 2026. A positive factor is year-end debenture refinancing at lower interest rates. First-half net profit for 2026 was 2.998 billion baht, representing 49.8 percent of the full-year profit forecast of 6.030 billion baht, or earnings per share of 0.46 baht. Analysts recommend a buy rating with a target price of 8.30 baht per share, based on a price-to-earnings ratio of 18 times, close to the three-year historical average. They view this as more appropriate than the past range of 25 to 30 times given risks to purchasing power and challenging sales growth, while still positive on strengths in gross margin and financial management. On the technical side, the share price tested support at 6.50 baht and then saw buying return in a double-bottom pattern, closing above the simple moving average with a long white candle. The trend appears to have ended its minor downtrend. Key support is 6.60 to 6.50 baht, with resistance at 6.85 baht. If the price breaks through that level with rising volume, it would signal an upward N-shaped pattern. For existing shareholders, the recommendation is to hold or buy more, with a chance to test resistance at 6.85, 7.00 and 7.30 baht. For those without a position, the advice is to buy for the short term, focusing on holding above support at 6.60 to 6.50 baht, which should not be broken.
Home Product Center Public Company LimitedQ2 net profit up 14% with improved gross margin, beating expectations.
