On Tuesday at 10:14 AM (Bangkok time), the share price of Siam Global House Public Company Limited (SET: GLOBAL) jumped by 6.50% or THB 0.40 to THB 6.55, with a trading value of THB 101.52 million.
GLOBAL reported an impressive net profit after tax (NPAT) of THB 803 million for the first quarter of 2026, marking a 29% year-on-year increase. This result surpassed Kiatnakin Phatra Securities’ (KKPS) expectations by 23% and beat market consensus by 25%.
The strong financial performance is attributed primarily to robust margin expansion and effective cost control measures, while retail sales generally aligned with projections. GLOBAL’s 1Q26 performance already represents 37% of KKPS’ full-year estimate, suggesting a strong start to the year and potential upside risk for future forecasts.
Quarter-to-date (QTD), same-store sales (SSS) posted a positive low single-digit growth, reinforcing optimism regarding ongoing margin improvement and continued cost-saving efforts. These factors are expected to serve as catalysts for GLOBAL’s stock performance going forward.
In terms of retail operations, GLOBAL’s revenue from retail sales grew by 3% year-on-year to THB 8.6 billion, supported by new store openings. However, SSS declined by 2.8% for the quarter. Despite this, gross margin expanded by 150 basis points year-on-year to reach 26.6%. The margin improvement is largely credited to a higher mix of private label products, accounting for 27.5% of sales—up 340 basis points year-on-year—after overcoming supply shortages encountered during the first half of 2025.
Additionally, price increases implemented from March 2026, in response to geopolitical tensions between the U.S. and Iran, contributed to margin gains. As a result, gross profit for the quarter climbed 9% year-on-year to THB 2.3 billion.
On the cost side, selling, general, and administrative (SG&A) expenses remained flat at THB 1.5 billion, even as the company added six new stores over the year. Improved marketing effectiveness and logistics optimization drove aggregate savings of approximately THB 50 million per quarter, leading to a 50 basis point year-on-year drop in SG&A-to-sales ratio.
This efficiency secured a 22% year-on-year increase in earnings before interest and tax (EBIT), which reached THB 972 million, with the EBIT margin rising to 11.3%—an increase of 180 basis points. Additional bottom-line support came from a 41% year-on-year decrease in interest expenses, down to THB 38 million, mainly due to lower interest rates and ongoing debt repayment.
Following these, Kiatnakin maintains a ‘Buy’ recommendation on GLOBAL, setting a target price at THB 7.08 per share.
