In a bid to capture more market share, WLCON will be further expanding its retail line to include \u201cDo It Wilcon\u201d and \u201cBargain Center by: Wilcon Depot.\u201d The former will allow the company to sell basic tools and materials in its mall-based stores, while the latter would pave the way for the discounted selling of older and\/or previously discontinued items.<\/p>\n\n\n\n
While we still expect the expansion of WLCON\u2019s depot stores to be the main driver for profitability, we note that these new entries would help cover for OPEX and be accretive towards operating margins. More significantly, these endeavors would further increase the company\u2019s brand recognition by expanding its scope to capture more aspects of the home improvement space as well as a larger customer base.<\/p>\n\n\n\n
Given the highly-fragmented nature of the home & gardening market, with WLCON\u2019s 6% share (as of 2020) already being the largest, there is much room for the company to grow its presence and position itself as a one-stop shop that can cater to all sorts of home improvement needs. <\/p>\n\n\n\n
Currently, the company\u2019s upside at our Target Price of P36.40 remains significant at 13.8%.<\/p>\n\n\n\n