TRIS Rating Assigns “AA-” Rating to Senior Unsecured Debt Worth Up to THB3 Billion of “HMPRO” with “Stable” Outlook

Stocks News Thursday June 30, 2022 14:18 —TRIS News Release

TRIS Rating affirms the company rating on Home Product Center PLC (HMPRO) at ?AA-? with a ?stable? outlook. At the same time, TRIS Rating assigns the rating of ?AA-? to HMPRO?s proposed issue of up to THB3.0 billion in senior unsecured debentures. The proceeds from the new debenture issuance will be used to refinance HMPRO?s outstanding debt.

The ratings reflect HMPRO?s leading competitive position in the home improvement retail business in Thailand, its sound financial standing, and well managed working capital. However, HMPRO?s strengths are offset by cyclicality in the housing market, intensifying competitive pressures, and decelerating economic growth in Thailand.

HMPRO?s total operating revenue remained in line with TRIS Rating?s projection for 2021. Its total revenue was pressured by the impacts of COVID-19 lockdowns in the third quarter of 2021; however, the total revenue bounced back by 26% quarter-on-quarter (q-o-q) in the last quarter of 2021 following the gradual easing of COVID-19 restrictions. Thus, total operating revenue grew by 3.5% year-on-year (y-o-y) to THB63.9 billion in 2021.

HMPRO?s gross margin increased to 25.8% in 2021, compared with 25.3% in 2020. The company?s strategy is to focus more on high-margin products. Sales of house and imported brands, which carry higher margins, accounted for 19.5% of total sales in 2021. HMPRO aims to maintain the proportion of house and imported brands at 20%-20.5% of sales in 2022. The company?s earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 4% y-o-y to THB10.3 billion in 2021. The company reported a net profit of

THB5.4 billion in 2021, compared with THB5.2 million in 2020.

During the first quarter of 2022, HMPRO?s total operating revenue and net profit remained satisfactory. Total operating revenue grew by 5.3% y-o-y. EBITDA also improved by 6.1% y-o-y, rising to THB2.8 billion in the first three months of 2022. HMPRO reported a net profit of THB1.5 billion in the first quarter of 2022, compared with THB1.4 billion in the same period of the prior year.

We expect HMPRO?s financial profile to remain strong over the forecast period. HMPRO?s total debt to capitalization ratio was 38.7% as of December 2021, down from 41.7% at the end of December 2020. In our base-case projection, HMPRO?s total debt to capitalization ratio is projected to remain in the 32%-35% range during 2022-2024.

We expect HMPRO to have ample liquidity over the next 12-18 months. The company has scheduled debt repayments of THB3.2-THB5.2 billion per annum during 2022-2024. At the end of March 2022, its cash on hand and short-term investments stood at THB4.7 billion, with unused credit facilities of more than THB11.7 billion.


The ?stable? outlook reflects TRIS Rating?s expectation that HMPRO will remain Thailand?s leading home improvement retailer. We expect the company?s leverage to remain at an acceptable level even as the company continues its business expansion.


The rating could be upgraded if the company significantly enlarges cash generation while maintaining a strong balance sheet. In contrast, HMPRO?s rating could be revised downward if its financial performance is weaker than expected or if leverage rises significantly, either as a result of an aggressive expansion or a drop in operating performance.


- Key Financial Ratio and Adjustments for Corporate Issuers, 11 January 2022

- Issue Rating Criteria, 15 June 2021

Home Product Center PLC (HMPRO)

Company Rating: AA-

Issue Rating:

Up to THB3,000 million senior unsecured debentures due within 3 years AA-

Rating Outlook: Stable

TRIS Rating Co., Ltd./
Contact:, Tel: +66 0 2 098 3000/Silom Complex Building, 24th Floor, 191 Silom Road, Bangkok 10500, Thailand
? Copyright 2022, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution, or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited, without the prior written permission of TRIS Rating Co., Ltd. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient?s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information. All methodologies used can be found at

เว็บไซต์นี้มีการใช้งานคุกกี้ ศึกษารายละเอียดเพิ่มเติมได้ที่ นโยบายความเป็นส่วนตัว และ ข้อตกลงการใช้บริการ รับทราบ