Earnings Report /
Thailand

RS PCL: Bottom-line miss

  • Bottom-line written in red ink

  • RS reported a net loss of Bt0.3m for 3Q21

  • Sales totaled Bt852m, down by 9% YoY and 14% QoQ

Napon Jaisan
Napon Jaisan

Equity Research Analyst

Bualuang Securities
11 November 2021

RS’s stock price has been sold down hard since Feb (from Bt30 to Bt17), due to an unexciting 9M21 outlook. The firm launched new products to the mass market at the wrong time, so marketing expenses rose much more substantially than sales. We recommend a wait-and-see stance until the recovery path is clearer. Our HOLD rating stands.

Bottom-line written in red ink

RS reported a net loss of Bt0.3m for 3Q21, a YoY and QoQ reversal. We had expected a modest net profit of Bt34m (the consensus number was NPAT of Bt22m). The result was weaker than our estimate because of a slimmer GM than we had assumed.