Dohome PCL might not qualify as a “unicorn,” but the home-improvement retailer does possess some rare traits that have made founder Adisak Tangmitrphracha a new member of Thailand’s billionaire club.
Established in Ubon Ratchathani, a rice-growing province about 600km from Bangkok, Dohome is one of only two Thai exchange-listed companies with a market value of more than US$1 billion that started in the rural northeast Isan region.
Dohome is also among a handful of Thai firms whose shares have at least doubled this year amid the backdrop of the COVID-19 pandemic, boosting Adisak and his family’s fortune to US$1.3 billion, the Bloomberg Billionaires Index showed.
The stock gained as much as 2 percent in Bangkok yesterday.
Adisak, 68, opened his first shop in Ubon Ratchathani in 1983, selling tools and construction materials mainly to local farmers and small contractors. It was not until 2007 that he set up the first Dohome megastore outside his home province, having gradually gained confidence and the resources to take on home-improvement stores owned by larger rivals such as Siam Cement PCL — Thailand’s first conglomerate — and Central Retail Corp PCL, controlled by Asia’s 20th-richest dynasty.
“Dohome has set a great example for small businesses to compete with much larger and better-funded companies from the metropolis,” Ubon Ratchathani Chamber of Commerce Chairman Mongkol Julthus said. “An aggressive pricing strategy and good customer services have helped the company attract loyal clients from many provinces.”
The firm operates 14 full-service stores nationwide, with a plan to increase outlets to 36 by end of 2025, its Web site says.
With the onset of the pandemic, the company boosted its online presence and marketing as government restrictions forced the shuttering of several stores in the country’s worst afflicted areas.
Adisak, who declined requests to be interviewed, remains active in the Ubon Ratchathani Chamber of Commerce, advising would-be entrepreneurs and funding social activities, Mongkol said.
The trained engineer with a degree from Khon Kaen University is often spotted jogging at the province’s main public park.
Dohome earlier this month reported net income of 601 million baht (US$18 million) in the second quarter, a 311 percent increase from the same period last year and a quarterly record since its listing in 2019.
For the six months through June, profit climbed 253 percent to 1.14 billion baht.
“The work-from-home policy is spurring demand for home renovation and decorations in some areas,” KTBST Securities PCL analyst Amnart Ngosawang said in Bangkok. “We expect Dohome to maintain steady earnings growth in the long term through its expansion strategy and effective product mix.”
The retailer plans to increase the number of its own products at the stores to boost profit margins, a presentation to analysts last week showed.
Sales of those products are expected to make up 20 percent of total revenue next year, from 16 percent in the second quarter this year, it said.
Contractor Somsak Thongthaemkaew, an independent businessman, has been a regular Dohome customer for five years, often stopping by several times a week to buy products from wiring and tools to marble and bricks.
“Most of my friends and competitors go to Dohome because they have a bigger selection than small shops,” Somsak said, while shopping in an outlet about an hour’s drive from Bangkok. “For homeowners doing self-repairs, the reasonable prices are a big draw, especially in these hard times.”
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