2Q21: Results Below Our And Market Estimates; Maintain SELL

OR’s 2Q21 net profit was below our and consensus estimates on unexpected hedging loss and higher-than-expected tax expense. Core operation turned to a loss on the decline in its marketing margin and sale volume. We expect 3Q21 core operations to remain under pressure given the new wave of COVID-19 infections in Thailand. OR is trading at 26.4x 2021F PE compared with regional oil retail peers’ 19x and regional consumer peers’ 29x. Maintain SELL. Target price: Bt26.00.