Home Product Centre same-store sales growth remains positive, with promotion campaigns like the Big Surprise Sale and the Home Pro Expo, the latter held from March 16-25, which boosted sales and traffic volume.

Moreover, the company should benefit from the downturn in interest rates, which will then stimulate consumer spending and new housing demand. The Real Estate Information Centre says new home registrations in Bangkok are projected to grow 5 per cent to 83,000 units this year.

Home Product Centre has already secured locations for four or five new stores this year, including two in Bangkok - on Phetkasem and Ram-Indra roads - and two or three upcountry - in Chon Buri province, possibly including Pattaya, and maybe in Rayong.

A total of 30 stores with a total sales area of 204,000 square metres are expected this year.

While future expansion may be limited under the Retail Act, the broker believes Home Product Centre will remain competitive, due to its leading status in the home-improvement market. Resilient growth will be generated by higher same-store sales together with recurring rental income and Home Pro Expo.

Sales totalled Bt14.2 billion last year. Home Product is forecast to deliver a net profit of Bt720 million this year, up 18 per cent.