On Friday at 10:53 AM (Bangkok time), the share price of PTT Oil and Retail Business Public Company Limited (SET: OR) jumped by 5.26% or THB 0.60 to THB 12.00, with a trading value of THB 487.62 million.
Kasikorn Securities (KS) holds a positive outlook on OR, citing a strategic trigger point as the company aims to aggressively increase its market share from 34-35% to 39% by the end of 2025. This goal is supported by proactive marketing campaigns that will be adjusted appropriately throughout the year.
Marketing expenses are expected to rise by approximately THB 200-300 million, but this increase is anticipated to be offset by cost-reduction measures amounting to about THB 2-3 billion from various excessive expenditures. In 2024, the company successfully reduced such expenses by around THB 2.5 billion.
Furthermore, in 2025, provisions for non-core business assets are expected to be lower than in the previous year, including the mobility business. Meanwhile, the company’s retail segment will continue benefiting from a recovery in tourism, resulting in sustained growth in jet fuel sales throughout 2025.
Following these developments, the analyst has set a target price of THB 14.30 per share for OR.
Notably, there are speculations that the company could be considering a share repurchase program, following its parent company, PTT, that is currently aiming to reacquire 470 million shares with a cap of THB 16,000 million. OR’s financial position appears strong, with cash and cash-equivalents totaling approximately THB 47,230.98 million and relatively low liabilities. The long-term debt due within a year stands at about THB 5,580.69 million, while unappropriated retained earnings are roughly THB 31,913.10 million.
