Finansia Securities (FSS) has released an analysis indicating that the Ministry of Industry is investigating certain steel products sold at DOHOME, specifically select SKUs at some branches, which have failed to meet regulatory standards. This follows public complaints regarding the quality of these products.
Currently, the remaining stock of the affected steel products is valued at approximately 2.2 million baht, not including items already sold to customers. Dohome Public Company Limited (SET: DOHOME) is required to submit a list of customers who purchased the product, along with the corresponding sales volume, to the Thai Industrial Standards Institute (TISI) within 15 days and must initiate a recall of the affected items.
According to DOHOME management, the sub-standard steel products originated from a secondary supplier engaged toward the end of 2024. The switch was a response to the main supplier’s inability to fulfil orders in time. At the time of purchase, the factory provided the necessary TISI documentation as per usual standards. However, issues with other related products primarily stem from the lack of clear labeling and details required by industry standards.
Looking forward, the company plans to implement more proactive verification measures, including random inspections of incoming goods, to prevent similar problems.
The incident is considered a negative sentiment for DOHOME. Nevertheless, the company has stated that all problematic products—both unsold stock and items already in customer hands—can be returned to the factory. As such, the immediate financial impact on DOHOME is expected to remain limited.
