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Home Product Centre
Kim Eng Securities (Thailand) has maintained a "buy" recommendation on Home Product Centre (HomePro) shares, with a fair value of Bt6 apiece.
Same-store sales growth, new stores added and last month's HomePro Expo will be the key driving factors for the firm's first-quarter performance. The broker expects same-store growth of about 3 per cent, compared with negative growth of 6.7 per cent in the first quarter last year when performance was hurt by sales cannibalisation at some Bangkok stores. Also positive is the opening of seven new stores since last year's second quarter. The HomePro Expo is projected to boost revenues Bt400 million, with Bt180 million expected to be booked in the first three months this year and the remainder in the second quarter. Meanwhile, HomePro will realise a full quarter of rental revenues from the successful Hua Hin branch, opened last year. The broker expects first-quarter net profit to climb 16 per cent to Bt137 million. HomePro's net profit is projected to grow 18 per cent to Bt720 million this year after it realises full-year contributions from new stores.
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