KGI Securities (Thailand) wrote in its analysis that Dohome Public Company Limited (SET: DOHOME) reported a net profit of THB 305 million for the second quarter of 2026, representing a 94% increase year-on-year and a 22% rise quarter-on-quarter.
This result was 9% above KGI’s projections, mainly due to a gross margin that exceeded expectations by 30 basis points and lower-than-expected selling, general, and administrative (SG&A) expenses, which offset slightly weaker sales.
For the first half of 2026, the company posted THB 555 million in earnings, up 38% year-on-year, comprising 69% of KGI’s full-year forecast. Same-store sales growth (SSSG) in the second quarter stood at 1.8%, fueled by a strong 7-8% SSSG from back-office customers. This growth offset a 3-4% decline in demand from end-users.
Combined with new store openings, DOHOME’s quarterly sales reached THB 7.8 billion, up 7% from the previous year but down 4% from the prior quarter. First-half sales totaled THB 15.9 billion, a 4% year-on-year increase, accounting for 52% of the brokerage’s forecast.
Gross margin for 2Q26 was notably high at 19.8%, up 1.8 percentage points year-on-year and 2.2 percentage points quarter-on-quarter, driven by a stronger steel product margin, low-cost inventory for non-steel goods, and an increase in house-brand product margins. SG&A expenses amounted to THB 1.2 billion, representing a 6% year-on-year and 5% quarter-on-quarter rise, with an SG&A-to-sales ratio of 14.8%.
KGI anticipates that 2Q26 will mark DOHOME’s earnings peak for the year. Softer demand is expected in the third and fourth quarters due to seasonal factors and normalization of gross margin as low-cost inventory advantages diminish and steel margins return to typical levels.
Meanwhile, year-on-year earnings growth in the second half of 2026 should benefit from a low comparison base in 2025, which was impacted by a steel shortage and border issues.
Following the second quarter results, KGI adjusted its gross margin assumptions upward by 10 basis points for 2026-2027, raising earnings forecasts for the years by 3% and 1%, respectively. The 2027 earnings outlook remains stable as margins normalize.
As a result, the target price for DOHOME was adjusted to THB 4.00 per share, based on a 17x price-to-earnings ratio, and a ‘Neutral’ rating was maintained due to expectations of performance normalization after a strong second quarter.
