Company Coverage
Airports of Thailand (AOT TB): Several Tailwinds In Addition To New PSC Rate
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Bt65.00
Bt85.00
+30.8%
Bt80.00
Analyst
Analyst
Nonpawit Vathanadachakul
Highlights
We attended AOT’s analyst meeting to review its 3QFY26 results and the tone was positive.
AOT is actively adding more routes of revenue while cutting down major expenses, which will be a good earnings driver in addition to the new PSC rate.
We see an improving trend of passenger arrivals in 4QFY26 which will be positive to AOT’s earnings outlook. AOT remains one of our tourism sector top picks. Maintain BUY with a higher target price of Bt85.00. (previously Bt80.00).
Analysis
Positive tone during analyst meeting. We attended Airports of Thailand’s (AOT) analyst meeting to review its 3QFY26 results and the tone was positive.
Potential interest in new concessions on land near BKK. AOT disclosed that a logistics player has shown interest in its 723-rai landbank near Suvarnabhumi Airport (BKK). Currently, they are in negotiations for the terms and fee of the concession. If this deal goes through, it will provide AOT with additional concession revenue, and the logistic player’s business will also synergise well with AOT’s cargo business. This logistics player provides both air mail services as well as shipping which will help in connecting AOT’s cargo business with more customers.
Bringing back inbound duty-free shops. AOT previously reclaimed the area and closed the inbound duty-free shops in Aug 24, which caused a reduction in AOT’s concession revenue. AOT has received requests from passengers to bring back the inbound duty-free shops. AOT will still need to discuss with the related officials and King Power on the details and timeline. The concession revenue model is unlikely to be same as previously, which was based on the area used by the duty-free shops. So far, King Power Duty Free (KPD) has been paying their concession fee on time and even paying their receivables ahead of schedule.
Reversal of credit loss from debt repayment of THAI. AOT had previously declared around Bt5b of credit loss during THAI’s rehabilitation procedure. THAI has admitted and repaid AOT the amount of Bt994m. There is still Bt4b of expected credit loss remaining that will be pursued and predicated by the court in 2027. If the court rules in AOT’s favour, AOT will receive a larger reversal of credit loss.
Highlights
We attended AOT’s analyst meeting to review its 3QFY26 results and the tone was positive.
AOT is actively adding more routes of revenue while cutting down major expenses, which will be a good earnings driver in addition to the new PSC rate.
We see an improving trend of passenger arrivals in 4QFY26 which will be positive to AOT’s earnings outlook. AOT remains one of our tourism sector top picks. Maintain BUY with a higher target price of Bt85.00. (previously Bt80.00).
Analysis
Positive tone during analyst meeting. We attended Airports of Thailand’s (AOT) analyst meeting to review its 3QFY26 results and the tone was positive.
Potential interest in new concessions on land near BKK. AOT disclosed that a logistics player has shown interest in its 723-rai landbank near Suvarnabhumi Airport (BKK). Currently, they are in negotiations for the terms and fee of the concession. If this deal goes through, it will provide AOT with additional concession revenue, and the logistic player’s business will also synergise well with AOT’s cargo business. This logistics player provides both air mail services as well as shipping which will help in connecting AOT’s cargo business with more customers.
Bringing back inbound duty-free shops. AOT previously reclaimed the area and closed the inbound duty-free shops in Aug 24, which caused a reduction in AOT’s concession revenue. AOT has received requests from passengers to bring back the inbound duty-free shops. AOT will still need to discuss with the related officials and King Power on the details and timeline. The concession revenue model is unlikely to be same as previously, which was based on the area used by the duty-free shops. So far, King Power Duty Free (KPD) has been paying their concession fee on time and even paying their receivables ahead of schedule.
Reversal of credit loss from debt repayment of THAI. AOT had previously declared around Bt5b of credit loss during THAI’s rehabilitation procedure. THAI has admitted and repaid AOT the amount of Bt994m. There is still Bt4b of expected credit loss remaining that will be pursued and predicated by the court in 2027. If the court rules in AOT’s favour, AOT will receive a larger reversal of credit loss.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Bt65.00
Bt85.00
+30.8%
Bt80.00
Analyst
Analyst
Nonpawit Vathanadachakul
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