OR’s nadir quarter of 2022 is behind us. Expectations of operational improvement in 4Q22 and earnings growth for 2022 overall, buoyed by broad demand improvement and expansion in both oil and non-oil businesses should catalyze the share price going forward. Also, there is scope for upside to our earnings forecast from new investments. Our BUY rating stands.
OR reported a 3Q22 net profit of Bt701m, down 63% YoY and 89% QoQ. The result was 18% below our estimate (39% below the consensus’), due to slimmer gross profit of lifestyle biz than expected, higher SG&A expenses than modeled, and heftier extra losses than anticipated.