Elevator Pitch
I assign a "Neutral" rating to Thailand-listed home improvement retailer Home Product Center Public Company Limited (OTCPK:HPCRF) (OTC:HPCUF) [HMPRO:TB]. Weak same store sales growth in the near term could be offset by gross margin expansion driven by a higher proportion of private label sales and operating efficiency improvements from a new distribution center. I do not find Home Product Center's valuations sufficiently attractive, even after taking into account the growth potential of Home Product Center's Home Service business and Mega Home stores in the medium term.
Home Product Center