Opportunity Day The Stock Exchange of Thailand 2Q'16 Results Aug 10, 2016 - Home Product Center Public Company ...
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Opportunity Day The Stock Exchange of Thailand 2Q’16 Results Aug 10, 2016
Disclaimer This Presentation (The “Presentation”) has been prepared by Home Product Center Plc. The Presentation is private and confidential and is being made available for information purposes only. Accordingly, this Presentation may not be copied, reproduced or redistributed to any other person save with the prior written permission of the Company. By accepting this presentation, each recipient accepts and agrees with the Company that it will comply with, and that it will procure that any other person to whom it provides this Presentation complies with, the Terms set out herein and all applicable laws and regulations. This Presentation is not a prospectus and is not intended to and does not constitute offer or solicitation of any offer in respect of securities. It does not constitute any recommendation or Investment advice, is not intended to form the basis of an investment decision and should not be relied upon for such purpose. This Presentation has not been approved by any regulatory authority. Neither the Company or their respective advisers accepts any liability whatsoever arising in connection with the distribution of this Presentation to recipients hereof. This Presentation is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly to any other person or published, in whole or in part, for any purpose. No part of this presentation may be reproduced or taken or transmitted. The distribution of this presentation in other jurisdictions may be restricted by law, and persons into whose possession this presentation comes should inform themselves about, and such restrictions. By accepting this presentation you agree to be bound by the foregoing restrictions.
HomePro is the leading home improvement retailer in Thailand. Our product range covers 40,000 items. We operate 77 stores nationwide, providing complete services as One Stop Shopping to attain highest customer satisfaction. The HomePro’s stock is traded on the Stock Exchange of Thailand (SET - hmpro, BB - hmpro:tb).
Background
1996 : Formation of HomePro by Land & House group.
2001 : Listed in SET.
2006 : Selected as one of SET 100 list of companies.
2010 : Selected as one of SET 50 list of companies.
2013 : Introducing the new business “Mega Home”
2014 : Expanding our business overseas for the first time in Malaysia.
July 16 : Operating 77 stores of HomePro, 9 stores of Mega Home and
1 store in HomePro format in Malaysia.
What HomePro does?
Thailand and Southeast Asia’s largest retailer of home improvement products which
includes home improvement product (hardware, plumbing, painting, tools, outdoor
living & garden), bathroom, kitchen, lighting, home appliances and household
accessories, furniture and decorative products with full service support under
HomePro format. With Mega Home business, there are more merchandise categories
than above: construction materials, daily use products, office supplies, leisure goods
and more household products are added.
4
Major Shareholders as at April 20, 2016
Top 10 Shareholders %Share
1. Land and Houses Plc. 30.2
2. Quality Houses Plc. 19.9
Land & House
30.2% 3. Mr. Niti Osathanuklor 4.7
4. Thai NVDR Co., Ltd. 2.6
Others Quality
House 5. Mr. Manit Udomkunnatum 2.6
39.6%
19.9% 6. Social Security Office 2.3
7. AIA Co., Ltd. 2.1
8. Sarasin Co., Ltd. 1.3
Niti Osathanuklor
4.7% 9. Chase Nominees Limited 1.3
Management Manit Udomkunnatum
&Employee 2.6% 10. State Street Bank Europe Limited 1.2
3%
11. Others 31.8
Market Capitalization : 147,293.42 MB (as at 9 August 2016)
Paid-up Capital : 13,151,198,025 shares
5
Corporate Group Structure
Home Product Center Plc. : Operating HomePro in Thailand
Market Village Co., Ltd. Home Product Center Mega Home Center DC Service Center
(Malaysia) Sdn. Bhd. Co., Ltd. Co., Ltd.
Holds 99.99% of total Holds 100% of total Holds 99.99% of total Holds 99.99% of total
shares shares shares shares
Objective to manage Objective to operate Objective to operate Objective to operate
rental space and a retail business in retail business under the warehousing and
provide utilities Malaysia. trade name “Mega distribution.
services to tenants. Home”.
6
Agenda 2Q’16 Financial Results
Business Outlook
Footprint in Thailand as at June 30, 2016
Greater Bangkok : 22 stores
Upcountry : 55 stores
Greater Bangkok : 2 stores
Upcountry : 6 stores
Malaysia : 1 store
8
Sustainable Sales Growth
Unit : MB
FY.
52,513
47,965
1,176 28,258
40,007 1,547
25,535
34,542
6.1% 4.6%
25,535 28,258
1H16
1H16 H’
1H'15 HomePro Subsidiaries H’ 6
1H'16
1H16, sales growth 10.7% YoY, driven by HomePro 6.1% and subsidiaries (Mega Home & Malaysia)
4.6%. In addition, the product categories that outperform in 2Q were seasonal products especially
cooling merchandise. 9
Rising Other Income
Unit : MB
7.1%
6.8% 6.8% 7.0%
6.6%
FY.
3,730
3,244
2,719 20%
829
1,680 1,989 689
1,160 17%
991
1H'16 1H'15 1H'16
Others Rent & service %on Sales
• Rental & Service Income increasing from the improvement and area expansion of Suvarnabhumi Market
Village which was opened in May 2015 as well as an increase in rental space of new HomePro branch.
• The increase in Other Income was mainly due to increasing joint-advertising income and in-store
promotion with vendor as well as service income from “Home Service” program. 10SG&A Expenses
Unit : MB
23.1% 23.2% 23.4% 23.5% 23.1%
FY.
12,282
772 1,010
11,119
31%
9,245
6,009 6,527
5,237 5,516 5%
1H'16 1H'15 1H'16
Sales Related Admin Exp %on Sales
1H16, SG&A increased by 8.6% compared to the same period last year. The increases are mainly from
Depreciation and Salary following the expansion of new stores. However, SG&A % to sales has
marginally improved, resulting to the decrease from 23.5% in 1H'15 to 23.1%. 11NPAT & EPS
Unit : MB
7.7% 7.7%
6.9% 6.7%
6.6%
6.1%
FY. 0.28 0.25 0.25 0.27
3,313 3,499
3,068
2,671
1,857 0.12 0.14
1,554
1H'16 1H'16
NPAT %on Sales NPAT EPS
1H16 NPAT growth by 19.5% and NPAT % EPS in 2015 taking impact at ratio of 15:1 paid
to sales increased from 6.1% to 6.6% in May 2015 (Final).
12Dividend
Unit : Baht/Share
2015
98.4 97.6 Final Dividend (payment date : 29/4/2016)
95.9
93.3
On 7 April 2016, AGM has passed resolution to pay
cash dividend at Baht . 5/share.
Interim Dividend (payment date : 22/9/2015)
0.37
0.31 On 25 August 2015, the Board of Director passed
0.19
resolution to pay cash dividend at Baht . 0/share.
0.25
0.09
0.04 0.03 2014
Final Dividend (payment date : 8/5/2015)
Stock Dividend Cash Dividend On 9 April 2015, AGM has passed resolution to pay
stock dividend and cash dividend as follows:
Payout Ratio
1. Stock : 15 current shares /1 dividend share
2. Cash : Baht . 7 /share
Interim Dividend (paid on 13/11/2014)
1. Stock : 8 current shares /1 dividend share
2. Cash : Baht . 889 /share
HomePro’s Dividend Policy is to pay not less than 40% of NPAT. 13ROA – ROE - ROCE
Unit : %
ROCE
29.5
ROE 28.0 27.1
23.3
29.5 21.5 22.0
27.8
23.0
18.8 18.0 19.3
ROA
10.7 11.5
9.9
8.3 7.7 7.9
1H16
Net Profit ROA ROE ROCE
14Agenda 2Q’16 Financial Results
Business OutlookThai Consumer Confidence down since January
CCI CPI
110 10
100 8
90 6
80 4
70 2
60 0
50 -2
CCI Inf lation Rate
Thailand Consumer Confidence Index (CCI) fell to 71.6 in June, compared with 72.6 in May and 72.7 in April.
However, consumer prices rose for the third straight month in June, driven mainly by rising fuel and food prices.
Thai consumer confidence dropped due to worries about the impact of Britain’s decision to leave the European
Union on the domestic and global economy. Consumers were still concerned about low commodity prices and
felt the country’s economic recovery was slow.
However, consumer sentiment was expected to recover on prospects that the government spending and
investment will aid growth.
Source : The center for economic and business forecasting, UTCC. 16Continuous margin expansion through Private Label
The main objective of the development and selection of private brand products is an adherence to build
up value-added to customers. Therefore, the core element of private brand products is quality and
worthiness. In addition to the Company’s increase of variety of products, it had continued to develop and
select products with quality to continuously provide worthiness to customers. To date, we have a total of
36 private brands and over 1,000 items.
172016 Store Expansion Plan
Malaysia
2016 No. of New stores 5 3-4 1
1Q Chaiyapruk 26 Feb
Rojana 29 Apr
Rojana 2Q
Rama 3 (Relocation) 27 May
Chaiyapruk Rama 3 Hat Yai 28 Jul
3Q
Chonburi (Bang Sa Re) Sep
2 1-2 1
4Q
stores stores store
Hat Yai Our stores in 2016
Total (stores) 80 10 - 11 2Our New Category, BIKE CLUB
26 Feb : Chaiyapruek
27 May : Rama 3
Complete and Congenial for Bike Lovers
Bike Club offers over 300 series of bicycle from the top leading brands along with full range of
services covering professional bike fitting, repair services, test track, bike accessories, fitness
zone, healthy food & café.
Bike Club established its first branch at HomePro Chaiyapruek with an area of more than
1,000 sq.m. as the biggest integrated cycling store in AEC.
193Q’16 Marketing Highlight
A 10-day long exhibition, Come visit and join
our activities, special shows, and food truck at
HomePro Fair 2016 - Living & Lifestyle Fair at
Impact Arena Muang Thong Thani during July
23-31, 2016.
Home renovation TV show
1st Time in Thailand
Sunday - 6.30 pmContact us
Q&A Tel +662-832-1416
Email : IR@homepro.co.thYou can also read
