
Home Product Center Plc (HMPRO)
We believe the slight disappointment in Q4 2011, partly due to flood-related expenses, will be made up for by reconstruction demand in H1 2012.
We see HMPRO as the best play on reconstruction demand. The FY11 core net profit accounted for 97% of our number. Given upgrade to EPS, our DCF-based target price (2.5% LTG, 8.8% WACC) is raised. Maintain Outperform.