After the analyst meeting with PTT Oil and Retail Business Public Company Limited (SET: OR), Kasikorn Securities stated that OR’s executive expected that 4Q24 oil sales should normalize after the company launched promotional campaigns to drive sales such as THB 30 million worth of gold giveaways. The company executive expected to pull the market share back to 37% from 3Q24 at 35%.
The Board expected SG&A to decrease in 2024 by 15% Y-o-Y or THB 3 billion (0.4% of the company’s 2024 revenue estimation), by mainly cutting marketing expenses down, and using in-house production for brand awareness strategy instead of outsourcing.
The company would maintain its 2024 expansion rate. Currently, the company’s gas station and cafe Amazon have reached 23% and 53% of the company goal respectively. Normally 4Q would see the company accelerate its expansion.
OR is closely monitoring its investment performance, and aims to take a more direct approach to the company business. In 3Q24 the company decided to cut losses to unprofitable ventures such as Texas Chicken, Kouen, and ONO Sushi, and the company expected that to push the EBITDA margin of the lifestyle group into a positive.
Kasikorn Securities reiterated its recommendation to “hold” at a target price of THB 16.40 per share.
