Earnings Report /
Thailand

Home Product Center PCL: 2Q22 result in line; fatter YoY margins supported profit growth

  • Profit in line with our estimate and consensus

  • HMPRO reported a core profit of Bt1,520m for 2Q22

  • The company reported 2Q22 retail sales of Bt16,319m

Bualuang Securities
27 July 2022

We have a BUY call on the stock. HMPRO now trades at a 2023 PER of 27x, close to its Feb 2020 trough (when COVID-19 started to become an issue). Once the market recognizes HMPRO’s 2H22 profit growth profile, it should start bidding up the price. 

Profit in line with our estimate and consensus

HMPRO reported a core profit of Bt1,520m for 2Q22, up by 6% YoY and 1% QoQ. The core number was in line with our estimate and the Bloomberg consensus. SSS declined by 1% for HomePro and by 4-5% for Mega Home, in line with our assumptions. The YoY profit growth was driven by margin expansion.