Q House Ready to Sell HomePro Stake Featured


Quality Houses, which holds 19.77% in Home Products Centre, plans to sell its shares if it is offered a good price, said chief executive officer and president Rutt Phanijphand.

"Foreign companies have contacted an intermediary for a HomePro stake but the price is not attractive yet. The company is not in a rush to sell its shares, as HomePro is still growing well. An analyst said the target price for HomePro shares was Bt16-Bt17, but now averages Bt12," Rutt said.

A source close to the deal said one foreign investor had tried to buy HomePro several years ago but the transaction was not concluded.

"HomePro's major shareholders believe that the business has potential to grow," and don't want to sell at this time, the source said.

The major shareholders in Home Products Centre are Land & Houses, with 30.21 per cent, followed by Quality Houses with 19.77%, Niti Osathanuklo 4.73%, Manit Udonkhuntham 3.08%, and American International Assurance Co 3.04%.

An analyst at Bualuang Securities does not expect a HomePro deal to be closed soon as the market price is still below the price at which LH Group wants to sell.

HomePro's market capitalisation is Bt95 billion.

HomePro yesterday closed at Bt12.70, up Bt0.90 or 7.63% from Wednesday.

HomePro recorded net profit of Bt730 billion in the second quarter, up 24% year on year and 6% quarter on quarter. Gross profit margin rose 67 basis points year on year and 118 basis points quarter on quarter on the back of an increased proportion of HomePro brand and high-profit-margin products.

In the current quarter, the Bualuang Securities analyst forecast HomePro to see higher year-on-year profit growth due to a low base in the third quarter of last year, with expectation for upward revision of this year's earnings performance due to high growth amid slower domestic consumption.

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