UOB Kay Hian Report – October 30, 2024
Thailand: Navigating Consumer Goods and Healthcare Sector Growth
Home Product Center: Balancing Earnings with a Modest Outlook
Home Product Center (HMPRO TB), a major player in Thailand’s home improvement retail market, reported earnings for 3Q24 that aligned with expectations. The company’s focus on maintaining stable margins, however, has resulted in a somewhat unexciting outlook. With increased competition and shifting consumer preferences, Home Product Center faces challenges in driving growth in its core markets. Recent efforts to boost efficiency and manage discount offerings have stabilized profitability, though they have limited the company’s expansion potential.
Given the current market landscape, Home Product Center is positioned as a “HOLD,” with a target price of Bt11.00. Moving forward, the company may look to strategic partnerships and operational adjustments to remain competitive while meeting the evolving demands of Thailand’s consumer base.
SCGP: Navigating Below-Expectation Profits with Strategic Adjustments
SCGP (SCGP TB), a leader in the packaging industry in Thailand, saw its 3Q24 net profit fall below consensus estimates, indicating ongoing challenges in a highly competitive sector. Despite its strong market position, SCGP has faced pressures from rising input costs and fluctuating demand, both of which have impacted profitability. The company’s ability to adapt to market shifts, such as through cost management and exploring new growth opportunities, will be crucial for future stability.
Rated as a “HOLD” with a target price of Bt26.00, SCGP’s strategic focus will likely center on operational efficiency and the pursuit of diversified revenue streams. The company’s commitment to resilience amidst market volatility remains critical as it seeks to navigate the complexities of Thailand’s packaging sector.
Bangkok Dusit Medical Services: Anticipating Record-High Earnings in Healthcare
Bangkok Dusit Medical Services (BDMS TB), one of Thailand’s largest private healthcare providers, is on track to deliver record-high earnings for 3Q24. The company’s expansive network of hospitals and specialty care centers has seen steady growth, supported by an increase in demand for high-quality healthcare services among both local and international patients. BDMS’s investment in advanced medical technology and patient care services has enhanced its reputation, contributing to an expected surge in earnings for the quarter.
With a “BUY” recommendation and a target price of Bt32.00, BDMS is poised for continued growth within Thailand’s healthcare sector. The company’s strategy to leverage its market leadership and expand service offerings makes it a compelling choice for investors seeking exposure to the thriving healthcare industry in Thailand.
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