PTT Oil and Retail Business Public Company Limited (SET: OR), under the leadership of CEO M.L. Peekthong Thongyai, is poised to finalize a major franchise acquisition in the restaurant sector valued at hundreds of millions of baht.
The move came after OR ceased operations of Texas Chicken in Thailand for six months due to a silent period agreement. The anticipated deal aims to inject fresh energy into OR’s strategy by expanding over 90 outlets in prime locations previously vacated by Texas Chicken, as part of its broader plan to attract consumers to PTT stations.
This strategic investment will include franchise costs and the refurbishment of various sites, involving a well-known and widely accepted restaurant chain. The initiative is expected to serve as a consumer magnet to boost patronage at PTT stations.
Meanwhile, the oil demand for the year is projected to grow, fueled by a recovering economy driven mainly by the tourism, consumption, and investment sectors.
In 2025, foreign tourist numbers are also expected to parallel those of 2024. However, the company hopes the government will promote domestic tourism, which will not only help distribute income and increase money circulation, but also boost OR’s oil sales.
With recent policy changes by President Donald Trump, concerning tariff adjustments on car imports. A surge in Chinese electric vehicles (EVs) into Thailand is anticipated, potentially affecting local oil demand in the coming 3-4 years.
However, OR is proactively preparing by continuously developing infrastructure, especially EV Chargers, supporting the growth of its non-oil business and facilitating the transition from traditional gas stations to EV servicing centers under the OR SPACE model.
Krungsri Securities forecasts a 37% growth in OR’s net profit for 2025, amounting to approximately THB 11,706 million. This growth stems from the Mobility sector’s expansion and regained oil market share, with gross profit per liter expected to rebound by 8% to about THB 0.9 per liter due to falling oil prices, which lowers government intervention on diesel pricing.
Simultaneously, the Lifestyle sector is set to recover sales based on increased outlets and reduced outsourcing expenses, along with effective cost management allowing for competitive pricing strategies.
With this outlook, the securities company maintains a “Buy” recommendation for OR shares, setting a target price of 17 baht per share. The stock is touted as an attractive long-term investment opportunity due to the revitalization of the Mobility sector alongside continuous expansion and cost-competitiveness in the Lifestyle segment.
