On Thursday at 10:31 AM (Bangkok time), the share price of Home Product Center Public Company Limited (SET: HMPRO) expanded by 1.29% or THB 0.10 to THB 7.85, with a trading value of THB 89.63 million.
Maybank Securities indicated that, in the short term, HMPRO is expected to benefit from capital inflow and weight reallocation from the transfer of Long-Term Equity Fund (LTF) to the Thai ESGX Fund (TESGX).
HMPRO’s stock price has declined since the beginning of 2025, in line with market trends due to concerns over Thailand’s slower economic growth. However, the current price level is now 14% lower than its lowest point during the COVID-19 period of 9.00 baht per share, contrasting with the record-high profits in 2024, bringing the estimated PER in 2025 down to 15.5x, which is lower than the past 5-year average by 1.27x and boasts a high dividend yield of 5.6% per year, the highest among the retail sector. This indicates an excessively undervalued status.
The analyst anticipated the company’s earnings in 2025 to grow by 5% YoY, supported by positive Same Store Sales Growth (SSSG) of 1-2%, the expansion of 12 branches, and an increased proportion of private label products.
Meanwhile, despite HMPRO’s SSSG being slightly negative since the beginning of the year, the management has set targets for the figure to reach 2-3% in 2025, expecting recovery from 2Q25 onwards, supported by a low base and government economic stimulus measures.
