On January 7th, 2025, RS Public Company Limited (SET: RS) experienced a significant decline in its stock price, closing at 3.74 baht, marking a drop of 1.61 baht or 30.09%. Similarly, RSXYZ Public Company Limited (SET: RSXYZ) witnessed its stock price fall to 1.15 baht, down by 0.40 baht or 25.81%.
Reviewing data from the Stock Exchange of Thailand as of November 30, 2024, it was observed that RS has collateral margin of 222,101,798 shares, representing 10.18%. Meanwhile, RSXYZ has 31,743,516 shares set aside, indicating 2.02% as margin securities.
Krungsri Securities wrote in a note that the reason behind the plummet in RS shares is still unknown as per the investor relations query. From a fundamental perspective, RS’s performance is not expected to improve in the fourth quarter of 2024, indicating ongoing net losses from the previous quarter. Both its commerce and media segments have shown no recovery signs, and restructuring efforts have yet to succeed. The stock exchange involving GIFT, now listed as RSXYZ, has further depreciated, suggesting minimal benefits for shareholders.
It is also observed that major shareholders have been offloading shares, which is not a positive indicator. Financially, as of Q3 2024, RS has a debt-to-equity ratio of 2x amid losses and non-profitable forecasts, indicating instability. Krungsri Securities is currently reviewing its estimates, target prices, and recommendations, pending a positive performance review.
In addition, an anonymous broker indicated that the decline might relate to Block Trade activities, evidenced by significant Open Position in RS stocks.
