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Benefitting from property stimulus plan Outperform, maintained Share price Bt 9.65, target price Bt 12.50
Home Product Center Plc (HMPRO)
HMPRO remains a sturdy roof over investors’ heads as it could be an indirect beneficiary of the government’s property stimulus programme. We also expect earnings to remain strong in 2H11 on the back of robust same-store-sales growth (SSSG) and store expansion. Given our higher earnings forecasts and a valuation rollover to end-12, our target price is raised to THB12.5 (DCF based on a higher WACC of 8.7% vs. 8.4%). That said, our target price will drop to THB11 as the stock goes ex-dividends today. Our call remains an OUTPERFORM.
