HomePro, a leading home improvement retailer in Thailand, is mulling expansion to neighbouring countries – including Cambodia next year – with an investment budget of between $170 million and nearly $200 million.
Rakpong Aroonwatdhana, HomePro’s head of investor relations, is quoted by the Bangkok Post as saying that in addition to Malaysia, HomePro is exploring Cambodia, Laos, Myanmar and Vietnam (CLMV) to maintain its revenue while the Thai economy is still relatively slow.
“HomePro is also looking at expanding its business into CLMV within the next year or two,” Rakpong said.
“Thailand’s economy is relatively slow compared with other countries, so we would rather slow down domestically and strengthen our presence in new markets in ASEAN.”
According to Bualuang Securities’ research, HomePro’s investment in CLMV will begin with Cambodia in 2018.
The research agrees that slow expansion in Bangkok is a good way of coping with the economic slowdown, while revenue growth still needs to be maintained.
The Bangkok Post said that HomePro’s new investment will come from two sources, $57 million to $85 million from its own cash flow and the rest from loans.
A Huawei representative for Cambodia, who asked not to be named, welcomed the entrance of HomePro, saying it would create momentum to further the country’s economic growth.
“Good news for economic development in Cambodia. It will create more jobs, increase tax revenue and help reduce poverty as well,” the source said.
“I don’t think HomePro will pose any competition as they will serve different target customers, needs and wants.”
HomePro, Thailand’s leading home products and hardware retailer, will see a rise of 10 percent in sales revenue this year from 2016, with a net profit increase of 17 percent, according to the research by Bualuang Securities.
HomePro reported total revenue for 2016 of 61.1 billion baht ($1.7 billion), up 8.7 percent, and a net profit of 4.13 billion baht ($117 million), up 17.9 percent.
HomePro carries more than 40,000 products. It operates 80 stores throughout Thailand, providing one-stop shopping to attain the highest customer satisfaction.