HMPRO Jumps 3%, Analyst Recomm. “BUY” at ฿17 with 26% Upside as Earnings Return to Growth

The share price of Home Product Center Public Company Limited (HMPRO) rose ฿0.40/share or 2.94% to ฿14.00/share as of 15:07 local time in Thailand, with a trading value of 662 million baht.

 

KGI Securities (KGI) rates “Outperform” on HMPRO with a target price rolled over to end-2022 at ฿17.00/share, from ฿15.00/share, based on an unchanged PER 34.0x (+0.5 S.D the average between Siam Global House GLOBAL and HMPRO. KGI reiterates its view on HMPRO’s earnings recovery with expected YoY growth in every quarter in 2021 on the back of the low base from the country’s lock down last year and recoveries in tourist arrivals and economic conditions.

 

LH Securities (LH) maintained a “BUY” recommendation on HMPRO with a target price of ฿17.00/share, showing a 25.7% upside, as the revenue is likely to return to a growth path this year, while expecting a net profit to reach a peak YoY in 2Q21. LH also has a positive sentiment toward a sales volume between Jan-Feb 2021 despite slightly slipping.     

 

Meanwhile Maybank Kim Eng (Maybank) upgraded the rating from TRADING BUY to “BUY”, with a DCF-based target price of ฿16.00/share. SSSG in 2M21 was less negative and tends to improve in March onwards due to a low base last year with a lockdown. Maybank expects 1Q21 earnings to return to growth YoY and to pick up even better in 2Q21 as gross margins recover after more house brands are imported from China, coupled with better operational efficiency. 

The share price is underperformed vs the peers, down 1% YTD as DOHOME soaring +50%, GLOBAL +29%. HMPRO is trading at 29x PE, 42x for DOHOME and 39x for GLOBAL.