RS’s stock price has been sold down hard, due to an unexciting 1H22 outlook. However, we expect its core earnings to rise YoY for the next two quarters (to resume a YoY earnings growth for the first time since 4Q20). It’s best to await clear signs of ad spending recovery.
Bottom-line below estimates
RS reported a net profit of Bt13m for 2Q22, down 76% YoY and 76% QoQ. The result was below our estimate of Bt32m and the street estimate of Bt27m because of lower sales than assumed.