Investors may be right in their concerns over how firms in general will weather the economic fallout of COVID-19. But for RS, we’re talking growth potential (and scope for profit upside). A re-rating is deserved, as the firm is expected to deliver new earnings records for 4Q20, 2020, and 2021. BUY!
Bottom-line was 31% above the consensus estimate
RS reported a Bt109m net profit for 2Q20, up 15% YoY but down 42% QoQ. The result was only 4% above our estimate, but was a whopping 31% ahead of the consensus, due to a fatter GM than the street had assumed.