RS’s stock price has been sold off since Feb (from Bt30 to Bt17), due to an unexciting 1H21 outlook. Its 2H21 numbers are likely to remain squeezed. 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 clear. Our call has shifted down from BUY to HOLD.
Bottom-line was 34% below our estimate
RS reported a Bt54m net profit for 2Q21, down by 51% YoY and 62% QoQ. The result was 34% below our estimate and 45% shy of the consensus, due to heavier SG&A expenses than we had assumed.