HomePro gains from renovation demand

       Home Product Center Plc, the SET-listed operator of HomePro hardware stores,says the home renovation market remains strong and should help it achieve 10% sales growth target this year in an otherwise vulnerable home-related products market.
       President Khunawut Thumpomkul said that since the economic downturn had reduced demand for new homes,the company had seen more customers in the home-improvement market, which now makes up 70% of its sales, up from 40% previously.
       "Our shift toward the home renovation market has proved to be a successful strategy," Mr Khunawut said yesterday."There's still a strong demand for homeproduct replacements such as changing carpets, curtains and kitchen fittings."
       He said HomePro had about 200,000 members,35% of whom are active customers.
       Same-store sales at HomePro in the second quarter rose 7.5% from the same period last year but it saw a contraction in tourist destinations due to the impact of political unrest and the H1N1 flu on travel.
       "Our sales in outlets located in beach destinations such as Phuket and Pattaya declined by 5% on average," he said."But growth remains positive since sales in other areas, especially in Bangkok,have not been affected much."
       Political and economic concerns this year have prompted HomePro to delay opening two outlets in Nakhon Pathom and Pattaya. It currently has 35 outlets nationwide.
       Mr Khunawut said the home products market as well as the tourism industry should pick up in the second half no more negative factors emerge.
       The company earlier forecast that Thailand's home-related products market worth 130 billion baht would continue to see declining growth to 5% this year compared with 10-15% during normal times.
       HomePro posted 27.68% net profit growth to 493.93 million baht in the first half, on sales totalling 9.681 billion baht,up 11.7% year-on-year. It targets 10%full-year sales growth from 18.54 billion baht last year.
       The company projects 1.6 billion baht in sales from its 13th anniversary sale campaign running from Aug 20 until Sept 13 at all its branches. It has invested 50 million baht to stage the event with 300 suppliers offering discounts up to 80%. Bangkok Bank, Citibank and UOB are among financial partners offering discounts to credit cardholders making installment payments.
       Shares of HomePro (HMPRO) closed yesterday on the Stock Exchange of Thailand at 6.10 baht, up five satang, in trade worth 2.17 million baht.