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 35xPE’22E,a 40%premium to Thai Consumer Discretionary.
- by Pi Research on Home Product Centerin Equity Bottom-Up
Key points:
1. 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
2. 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).
3. 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
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