HMPRO reported a 4Q24 net profit of Bt1,727m, up 3% yoy and 19.8% qoq, in line with our and market expectations. The key driver for 4Q24 was from a higher gross margin yoy. We still foresee an unexciting SSS growth momentum for 1Q25, expected at around -4% yoy. We maintain our earnings forecast for 2025, and anticipate a growth of 3% yoy. Maintain HOLD. Target price: Bt10.00.
KEY HIGHLIGHTS Results CP ALL (CPALL TB/BUY/Bt49.25/Target: Bt66.00) 4Q24: Better-than-expected earnings. Home Product Center (HMPRO TB/HOLD/Bt8.15/Target: Bt10.00) 4Q24: Results in line. Quality Houses (QH TB/HOLD/Bt1.61/Target: Bt1.70) 4Q24: Below expectations, decreasing yoy and qoq. Ratchaburi Group (RATCH TB/BUY/Bt27.00/Target: Bt40.00) 4Q24: Results below expectations, but bo...
We expect HMPRO to post a 4Q24 net profit of Bt1,690m, up 0.8% yoy, driven by a slight improvement in gross margin which offset the higher interest expense. Looking forward, we foresee development in cost management following the strategy to open hybrid stores. However, we still expect an unexciting 2024 top-line momentum amid intensifying competition. Maintain HOLD. Target price: Bt10.00.
GREATER CHINA Sector Automobile: Weekly: PV sales up 14% yoy and 30% wow. Maintain MARKET WEIGHT. Top BUYs: Geely, CATL, Fuyao and Desay. Renewable Energy: Solar energy equipment: Prolonged industry consolidation, moderation of global installation growth and rising protectionism challenge survivability. Results TAL Educational Group (TAL US/BUY/US$11.07/Target: US$14.00): 3QFY25: Strong earnings beat; profit turnaround amid investment in learning devices. INDONESIA Results Bank Negara Indonesia...
HMPRO report 3Q24 net profit of Bt1,442m, down 5.9% yoy, pressured by negative SSS of Home Pro. We expect unexciting 4Q24 earnings due to the sluggish SSS momentum. We revise down HMPRO’s 2024-25 net profit by 3% and 4.4% respectively. Its share price is trading at an unappealing valuation of nearly -1SD of PE while the outlook remains unexciting. Downgrade to HOLD. Target price: Bt11.00.
KEY HIGHLIGHTS Results Home Product Center (HMPRO TB/HOLD/Bt9.65/Target: Bt11.00) 3Q24: Earnings in line; unexciting outlook with unappealing valuation. Downgrade to HOLD. SCGP (SCGP TB/HOLD/Bt25.50/Target: Bt26.00) 3Q24: Net profit below our and consensus estimates. Update Bangkok Dusit Medical Services (BDMS TB/BUY/Bt28.25/Target: Bt32.00) Expecting a record-high quarter in 3Q24.
GREATER CHINA Initiate Coverage VSTECS Holdings (856 HK/BUY/HK$4.46/Target: HK$5.47): Leading IT distributor riding the AI wave. Results Haier Smart Home (6690 HK/BUY/HK$29.80/Target: HK$42.00): 3Q24: Earnings growth driven by efficiency improvement; expect potential tariff hike to have limited impact. Joyson Electronics (600699 CH/BUY/Rmb16.68/Target: Rmb30.00): 3Q24: Earnings in line; maintain BUY with unchanged target price of Rmb30.00. Shenzhen Inovance (300124 CH/HOLD/Rmb56.46/Target: Rmb56...
GREATER CHINA Sector Automobile Weekly: PV sales rebound by 10% yoy, beating estimates. Maintain MARKET WEIGHT. Top BUYs: CATL and Desay SV. Top SELL: XPeng. INDONESIA Update Pertamina Geothermal Energy (PGEO IJ/BUY/Rp1,130/Target: Rp1,400) Additional capacity of 55MW by Dec 24. Upgrade to BUY with target price unchanged. MALAYSIA Initiate Coverage 99 Speed Mart Retail (99SMART MK/BUY/RM1.65/Target: RM2.00) ...
GREATER CHINA Strategy Cross Currents We expect the MSCI China index to range trade for the rest of 2024; we prefer TMT, tech hardware and defensives like banks, communication services and utilities. Results Goldwind Science & Technology (2208 HK/BUY/HK$4.46/Target: HK$5.30) 1H24: In line; shifting focus to offshore WTG and overseas markets. Jiumaojiu International Holdings (9922 HK/BUY/HK$2.49/Target: HK$3.50) 1H24: Result...
HMPRO is maintaining its focus on the domestic market by strengthening existing stores and adding new hybrid stores. We foresee more intense competition, but we still see room for HMPRO’s improvement. We maintain our 2024-25 earnings growth estimates of 2.7% yoy and 5.9% yoy respectively. The share price is trading at a deep PE discount of -2SD. Maintain BUY. Target price: Bt12.10.
KEY HIGHLIGHTS Results IRPC (IRPC TB/BUY/Bt1.35/Target: Bt1.90) 2Q24: Still in the red. Muangthai Capital (MTC TB/BUY/Bt40.50/Target: Bt56.00) 2Q24: Earnings in line; credit cost and NPL ratio continued to be lower. Quality Houses (QH TB/HOLD/Bt1.66/Target: Bt1.82) 2Q24: Earnings exceed our expectation; core business remains challenging. Update Home Product Center (HMPRO TB/BUY/Bt8.20/Target: Bt12.10) More challenging outlook but share price trading at a deep discount.
GREATER CHINA Sector Internet: Strategic revamp to revitalise e-commerce GMV growth. Results Wharf Real Estate Investment Co (1997 HK/BUY/HK$20.10/Target: HK$28.30): 1H24: Underlying net profit up 2% on positive retail rental growth and lower funding cost; awaiting cyclical factors to improve. INDONESIA Results United Tractors (UNTR IJ/SELL/Rp24,150/Target: Rp20,000): 2Q24: Continued weakness; in line with consensus estimates. MALAYSIA Sector Utilities: Government likely to award short-term PP...
HMPRO reported 2Q24 earnings of Bt1.6b, flat yoy but down 5.3% qoq due to seasonality. The key positive in 2Q24 was mainly lower SGA-to-sales, which offset a lower top-line due to negative SSS growth. Although the same-store sales (SSS) for 15 days in July was negative, we expect SSS to recover due to a low-base effect and an improvement in economic activities. Maintain BUY. Target price: Bt12.10.
KEY HIGHLIGHTS Results Home Product Center (HMPRO TB/BUY/Bt8.85/Target: Bt12.10) 2Q24: Earnings in line. PTT Exploration & Production (PTTEP TB/BUY/Bt147.00/Target: Bt200.00) 2Q24: Net profit better than our and consensus expectations. Update Amata Corporation (AMATA TB/BUY/Bt22.80/Target: Bt30.00) 2Q24 results preview: Expect earnings to increase yoy and qoq. Delta Electronics (DELTA TB/BUY/Bt92.75/Target: Bt115.00) Better clarity on r...
GREATER CHINA Results WuXi AppTec (2359 HK/SELL/HK$29.85/Target: HK$22.00) 1H24: Results below expectations; draft bill remains a key risk for growth. Small-mid Cap Highlights Plover Bay Technologies (1523 HK/BUY/HK$4.08/Target: HK$6.05) Takeaways from luncheon: Self-driven talents driving product upgrades. INDONESIA Results Cisarua Mountain Dairy (CMRY IJ/BUY/Rp5,475/Target: Rp5,800) 2Q24: NPAT up 28.1% yoy, ahead of consensus expectation. M...
GREATER CHINA Strategy Alpha Picks: July Conviction Call Adding ASMPT, Innovent, Poly Property Services, TAL Education and Trip.com to our BUY list; hedging with SELL call on BYD. Small/Mid Cap Highlights Crystal International (2232 HK/BUY/HK$3.95/Target: HK$4.76) 1Q24 preview: Expecting interim DPS to more than double. INDONESIA Strategy Alpha Picks: Outperformance In Jun 24 And 2Q24 Our picks are BMRI, BBRI, EXCL, BSDE, TLKM, ACES, BBTN, CMRY, SIDO and JSM...
GREATER CHINA Sector Property – Hong Kong Landlords Robust trend of Northbound spending and weakened tourism arrivals during Dragon Boat Festival; rate cut and policy support are potential catalysts. INDONESIA Update Aspirasi Hidup Indonesia (ACES IJ/BUY/Rp850/Target: Rp1,200) Exploring options on its relationship with Ace Hardware America. MALAYSIA Initiate Coverage Pekat Group (PEKAT MK/BUY/RM0.86/Target: RM1.09) ...
KEY HIGHLIGHTS Strategy Alpha Picks: May 24 Portfolio: More bullish on 2H24 outlook; May 24 provides opportunity to BUY. Cut losses on EA and add TU. Results Home Product Center (HMPRO TB/BUY/Bt10.40/Target: Bt15.70): 1Q24: Earnings to gradually improve. Update Major Cineplex (MAJOR TB/BUY/Bt14.70/Target: Bt18.00): 1Q24 results preview: Expect yoy surge but qoq plunge.
HMPRO reported 1Q24 earnings of Bt1.7b, up 6.3% yoy and 2.1% qoq, in line with our and market estimates, driven by higher sales and gross margin. We foresee upcoming positive factors on HMPRO following the 2024 fiscal budget approval and rising steel prices. We expect HMPRO’s earnings to grow 6.6% yoy. We are still positive on HMPRO’s high ROE and dividend yield. Maintain BUY. Target price: Bt15.70.
GREATER CHINA Sector Macau Gaming Apr 24 GGR down 5% mom; downgrade to MARKET WEIGHT. Results China Construction Bank (939 HK/BUY/HK$5.10/Target: HK$6.00) 1Q24: Results in line with better NIM performance. LONGi Green Energy Technology (601012 CH/SELL/Rmb18.20/Target: Rmb14.38) 2023/1Q24: Below expectations; inventory write-down wipes out earnings. Downgrade to SELL. PICC Property and Casualty (2328 HK/BUY/HK$9.71/Target: HK$11.70) 1Q24: Earnings miss on higher COR and lower investment income...
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