RS’s Opportunity amid the Crisis.!
RS's Opportunity amid the Crisis.!
RS's Opportunity amid the Crisis.!
31 มี.ค. 2563

From a campaign of encouraging people to “stay at home and stop the infection for the nation” to halt the Covid-19 spreading… was expecting that a communication stocks will be the beneficiary as the increase of data consumption…
As some people use the internet to updating news, others use for entertainment purpose, like watching movies, listening to music, playing online games, while some groups utilize for work at home or “Work From Home”.
But in fact, there is another stock that would get an advantage as well which is RS Public Company Limited or RS.
As people spend more time at home, so there is more chance of calling in order to buy RS MALL products in line with the increasing number of TV viewers (included a viewer of  RS Channel 8).
Expecting that sales of RS Mall in 2020 will increase due to 1) 2020 is the first year that RS will recognize a full year revenue from sales through its existing partners, Thairath TV Channel 32 and Workpoint TV Channel 23.
2) A new TV partner like Amarin TV Channel 34, which already started selling RS Mall products since February and RS is preparing to add a new sales channel.
3) New Predictive Dial Selection (PDS) technology that has been added to support making a call to customer to drive increase a turnover of RS Mall.
And 4) a plan of launching new products in the end of the 2nd quarter of 2020 onwards.
That will make the marginal propensity to consume or MPC of 2020 in which Mr. Surachai Chetchotisak, a commander of RS, hopes to be a new El dorado that will retrieve its situation … After 2019, RS lost the revenue by 5.4% to 2,012 million baht.
Amid the crisis of other sector businesses, it’s an opportunity for RS .. !!
But that opportunity … whether enough to support RS spreading a wings again?
It’s a scene to be followed up …
Meanwhile, RS still has some positive factors from sales of drama and music copyrights to telco and mobile operators that will start to recognize revenue from 1Q2020 onward, which valued about 60-80 million baht per quarter of 2-3 year contract
Most recently, Mr. Surachai has cut a revenue target by 5-10% from the previous forecast, anticipating a 2020 revenue at 4,800 million baht, growing by 30%.
It’s  a very challenging goal … amid the economic slowdown.
Analysts believed that RS’s 1Q2020 turnover will be improved compared to the same period last year and as well better than the previous quarter. Predicted that the 2020 net profit will increase by 10%.
Actually, it quite disappointing … because it’s been a while since “Mr. Surachai” drew “BTS Group” and “Srivaddhanaprabha Group” to hold RS shares, but has yet to see any progress in business synergy.
If there is a synergy as expected, it would help RS strengthening much more.
Or it’s something wasted … What shall you do “Mr. Surachai” ..?