RS’s stock price has been sold down hard, due to an unexciting 1Q22 outlook. However, we expect its core earnings to rise YoY for the next three quarters (to resume a YoY earnings growth for the first time since 4Q20). Our call shifted from HOLD to TRADING BUY.
Bottom-line above estimates
RS reported a net profit of Bt55m for 1Q22, down 61% YoY but a QoQ turnaround. The result was 48% above our estimate and 38% better than the street because of a fatter GM and higher sales than assumed.