Thailand Prepares for Influx of Chinese Tourists, Anticipates Strong Q4 Profits
Bangkok, Thailand – As the global tourism industry starts to recover, Thailand is welcoming a significant increase in Chinese tourists. This surge is expected to boost the profits of low-cost carrier AAV, as the fourth quarter of this year is predicted to show the most outstanding growth.
Recovery Expected Following Tourist Resurgence
AAV, a prominent player in the Thai aviation sector, believes that the trend of income recovery will continue into the third quarter of 2023. With the resumption of domestic and international travel, AAV anticipates substantial growth in the final quarter. Visa exemption measures for Chinese tourists are projected to contribute significantly to the rise in travelers from China. LH Securities recommends buying AAV stocks, setting a target price of 3.50 baht.
Thai Government Stimulates Tourism Industry
With the government’s proactive measures to stimulate the tourism sector, AAV stands to reap significant benefits. Notably, the Chinese market plays a crucial role as Chinese AAV passengers make up 35% of all Chinese tourists entering Thailand. The current market share of Capacity Seat is 30% for Chinese AAV flights, a considerable increase from 11% in 2019.
Profit Expected to Reach 847 Million Baht
Despite AAV’s share price reflecting five consecutive years of underperformance due to intense competition and the impact of COVID-19, industry experts remain optimistic about its future. AAV is projected to achieve a normal profit of 847 million baht this year and a substantial growth of 90% to reach 1.6 billion baht by 2024. Industry analysts recommend buying AAV stocks at a suitable price to take advantage of this potential growth.
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Stock Dimension – AAV Budget soars to welcome Chinese tourists flooding into Thailand Expect Q4 profits to grow most prominently
AAV from LH Securities said that in 3Q23 the income trend is expected to continue to recover YoY following the recovery of Thai and foreign tourists, and 4Q/66 will have the most outstanding growth. From the Thai tourist season In addition to visa exemption measures for Chinese tourists. Expected to help significantly increase the number of travelers from China We recommend BUY with a target price of 3.50 baht.
Open arms to welcome Chinese tourists
Push the budgetQ4The most outstanding growth
Yuanta Securities said the government’s tourism sector stimulation policy is positive for AAV. Especially the Chinese market Because the share of Chinese AAV passengers is 35% of Chinese tourists entering Thailand. Meanwhile, the market share of Capacity Seat currently accounts for about 30% of Chinese AAV flights, which is higher than 11% in 2019.
Brokers expect this year to boast a profit of 847 million baht.
Although AAV’s share price This is in line with 5 consecutive years of weak performance due to intense competition. High oil costs and COVID-19, but looking at AAV’s performance Entering the operating period Normal profit this year is expected at 847 million baht and in 2024 it will reach 1.6 billion baht, growing by 90%. We recommend buying at an appropriate price at the end of 2024 at 3.50 baht.
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