CGS International Securities forecasted a THB 128 million net profit report by Moshi Moshi Retail Corporation Public Company Limited (SET: MOSHI) in the second quarter of the year, a 57% increase year-on-year.
The robust outlook derived from solid same store sales growth of 15%, a 170 basis point increase in gross margin to 54.8%, and enhanced cost efficiency. Furthermore, MOSHI’s selling, general, and administrative cost-to-revenue ratio are dropping 170 basis point YoY to 34.0%.
However, MOSHI’s net profit is expected to drop by 18% quarter-on-quarter due to seasonal factors.
The brokerage anticipates a more favourable sales mix to bolster MOSHI’s margin expansion. Thus, the firm reiterates the “Add” rating while maintaining a target price at THB47.75.
