Equity Analysis /
Thailand

OR: Growth mode switched on

  • Mobility business...growth on track

  • Lifestyle business...margin to fatten

  • Promising long-term growth prospects

Suppata Srisuk
Suppata Srisuk

Equity Research Analyst

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Bualuang Securities
30 September 2022

We hosted a virtual roadshow for domestic investors on Wednesday. The investors were broadly optimistic over OR’s both short-term and future growth prospects. The key topics of discussion at the meeting are summarized below:  

Mobility business...growth on track

The increase in economic activities following the easing of COVID-19 in Thailand and other ASEAN countries has continued to boost demand for petroleum products throughout 3Q22. OR’s oil sales volume looks set to deliver strong growth in 3Q22, similar to 1H22 (which saw its oil sales volume increased 19% YoY), driven by both retail and commercial segments. Given that, 3Q22 should be a better low season compared to the third-quarter low seasons of the prior years. From the margin perspective, OR’s 3Q22 gross oil profit will tend to sustain above Bt1/liter, even though it may soften slightly QoQ.