CGSI upgrades DOHOME, GLOBAL and HMPRO to Buy, raises Thai retail to Overweight

Money & Banking··TH·Read original
3▲3 ▼0Impact / 5
Summary · why it matters

The research team at CGSI, the Thai arm of CGS International, has shifted its view on Thailand's retail sector from Neutral to Overweight and upgraded its recommendations on DOHOME, GLOBAL and HMPRO from Sell to Buy, after data on residential low-rise construction permits returned to growth. Permitted construction area rose 10.6% year on year in the first quarter of 2026, following 11 consecutive quarters of contraction, and increased a further 7.7% in the second quarter of 2026. CGSI sees the growing construction pipeline likely translating into demand for construction materials and home decoration products in the fourth quarter of 2026 and on into 2027, which it calls the clearest sign of a recovery in home improvement demand in three years. DOHOME is the top pick, as construction materials account for nearly 50% of its sales in the first half of 2026, with roughly 35% coming from the northeastern region, where permitted low-rise residential construction area rose about 20% from a year earlier. GLOBAL derives about 35% of sales from construction materials, while HMPRO is expected to recover gradually in line with consumption, with a projected dividend yield of 5.5% in 2027. CGSI has raised its combined net profit forecasts for the three companies by 1.0% to 3.6% for 2026 to 2028, after lifting sales and margin assumptions for some of them and lowering financial costs.

Impact on assets 3

Consumer Discretionary▲
Dohome Public Company Limited
DOHOME
▲ PositiveCapitalrelevance

CGSI upgraded DOHOME from Sell to Buy as top pick, citing construction materials ~50% of sales and raised profit forecasts.

Off-coverage companies 1

CGS International Securities (Thailand) Co., Ltd.i
Private▲ PositiveCapitalrelevance

CGSI (Thailand) is the research house issuing the sector upgrade and Buy ratings on the three retailers.