HMPRO Reports Better-than Expected 3Q22 Earnings of THB1,533 Million, Up 76% YoY

Home Product Center Public Company Limited (SET: HMPRO) has announced its 2Q22 consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 3Q22 3Q21
Net Profit (Loss)
Million Baht
1,533.33 870.41
Earning Per Share
0.12 0.07
% Change 76.16
9 Months 2022 2021
Net Profit (Loss)
Million Baht
4,564.35 3,665.47
Earning Per Share (Baht) 0.35 0.28
% Change 24.52

In 3Q22, HMPRO reported a net profit of THB1,533.33 million, representing an increase of THB662.92 million, or up 76.16% as compared to the previous year. The main reasons include, total revenues were THB16,941.50 million,an increase of THB3,164.66 million, or up 22.97%.

Revenue from contracts with customers which comprised product sales revenue and service income of Home Service was THB15,896.57 million, representing an increase of THB2,726.40 million, or up 20.70% year-over-year. The significant increase of revenue was contributed by the resumption to normal operation of all stores compared to the same period of previous year of which some stores have been closed due to the lockdown regulation by the government. In addition, the recovery of domestic consumption and tourism is a plus although there was less traffic in some stores because of the heavy rainfall and flood in the third quarter of 2022.

Rental and service income amounted to THB440.64 million, an increase of THB223.59 million, or up 103.01% from previous year, thanks to more rental income from leasable space of Homepro stores and Market Village particularly in tourism areas,compared to the same period last year when rental areas were closed following the lockdown regulation by the government, in which the Company has lowered or waived rental fees for tenants to mitigate impact from COVID-19 outbreak. Moreover, there was rental income realization of rental space in the new store of Homepro at Bangna Km.1, which has been operated since the fourth quarter of 2021.

KGI Securities maintain sa rating of Outperform on HMPRO with an end-2023 target price of THB19.00 based on unchanged PER at 35.0x (+1.0 S.D historical average between Siam Global House (SET: GLOBAL) and HMPRO). The brokerage said that the 3Q22 earning result of HMPRO was 6% above its forecast and 4% above the street forecast mainly due to gross margin coming around 1ppts higher than estimated. This put 9M22 earnings at THB4.6 billion (+24% YoY), accounting for 72% of KGI’s full-year forecast.