Land and Houses Securities (LHS) has provided an analysis on Dohome Public Company Limited (SET: DOHOME) and Siam Global House Public Company Limited (SET: GLOBAL), with both stocks being recommended as ‘Buy’ and target prices of THB 3.80 per share and THB 7.40 per share, respectively.
For DOHOME, the company is benefiting from a short-term positive sentiment driven by steel industry operators gradually raising product prices by 10-15%. There are also indications that another price hike could occur in May if the situation does not stabilize. This has prompted an inventory stocking ahead of anticipated price increases, thereby offering an opportunity for sales to accelerate in the short term.
Additionally, DOHOME’s first quarter 2026 net profit is expected to grow both quarter-on-quarter and year-on-year, supported by increased sales following the end of flooding in the southern region and the contribution from newly opened branches. Same-store sales growth (SSSG) in March also returned to positive territory, expanding by 4%.
For GLOBAL, short-term positive sentiment is likewise being supported by the gradual steel price hikes. As a result, inventory stocking ahead of higher prices is expected to provide a short-term sales boost.
GLOBAL’s first quarter 2026 profit is anticipated to increase quarter-on-quarter due to seasonal factors but is expected to decline year-on-year, attributed to a 2-3% contraction in SSSG and an increase in selling, general, and administrative expenses (SG&A).
Nonetheless, Land and Houses Securities believes that profit momentum should progressively recover in subsequent quarters, buoyed by higher steel selling prices and the advantage of holding lower-cost inventory, which should provide support for improved profit margins.
