Krungsri Securities Public Company Limited said its research team expects HMPRO's normalized profit in the third quarter of 2026 to come in at 1.39 billion baht, up 6% from the same period a year earlier but down 13% from the previous quarter. The result is supported by an improved gross margin, driven by a higher share of Private Brand products and adjustments to selling prices, even as same-store sales continue to contract amid weak purchasing power and higher rainfall. Sales and service revenue in the third quarter of 2026 is expected at 16.4 billion baht, up 2% from the same period a year earlier but down 6% from the previous quarter, with growth coming from branch network expansion, most of it a conversion to the Hybrid Store format combining HomePro and MegaHome outlets. Six Hybrid Stores were added and four new branches opened, bringing the total to 134 branches at the end of the third quarter of 2026. Same-store sales at HomePro, which accounts for roughly 80% of sales, are expected to contract further to -2.5% from -0.9% in the second quarter of 2026. The gross margin is expected at 28.5%, flat from the second quarter of 2026 but up from 27.7% in the third quarter of 2025, helped by HomePro's Private Brand share, which is expected to rise to 22.0% from 21.2%. The SG&A expense ratio to revenue is expected to rise to 21.1% from 20.5% in the third quarter of 2025 and 20.0% in the second quarter of 2026. Interest expense is expected to fall 9% from the same period a year earlier. For the fourth-quarter 2026 outlook, normalized profit is expected to recover gradually both from the same period a year earlier and from the previous quarter, on demand for home repair and decoration products after flood conditions ease. If profit meets expectations, first-nine-month normalized profit for 2026 would represent about 74% of the full-year 2026 profit forecast. The broker maintained its 2026 normalized profit forecast at 5.95 billion baht, down 1% from the same period a year earlier, before returning to 7% growth in 2027. It also maintained a Neutral recommendation and a 2027 target price of 7.00 baht.
Home Product Center Public Company LimitedKrungsri expects HMPRO's Q3 2026 normalized profit to rise 6% YoY to 1.39 billion baht on improved gross margin.
Bank of Ayudhya PCL