HMPRO plus 0.74% or increase 0.10 baht to 13.60 baht, trading value 50 million baht at 10.48 from the opening price of 13.40 baht, the highest price 13.60 baht, the lowest price 13.40 baht.
Nomura Securities Pattanasin noted in the analysis that Slightly optimistic on the outlook for net profit of 3/65 of Home Product Center Plc (MHPRO) estimated at Bt1.52bn, growing +75% yy or flat qq (vs 2Q22 + 6% yy) due to low Base merit in 3Q21 (July-Aug. 21 with the movement restrictions) together with the tourism sector gradually improving, supporting SSSG recovering +17% from -1.1% in 2Q22 and will profits rebounding strongly in proportion to the continued increase in branded housing and income rental products
He remains optimistic on 4Q22 earnings momentum, with forecasts to reach the high point of the year as economic activity returns to near pre-COVID normal. At the end of this year, HomePro is expected to start holding a big EXPO again. Combined with the margin direction that will continue to rise, driven by annual sales promotion revenue recognition, therefore, we expect full year 65 normal profit to return above pre-covids at 6.45 billion baht, more than + 19% (DOHOME preferably -16% yy, GLOBAL+3%), inconsistent with the valuation side traded at PER?23F 25x below average -1.5 SD.
Therefore, we recommend “BUY” with a target price of 18.20 baht.
