#AOT #Thanhoon-UOB Kay Hian Securities (Thailand) recommends buying company shares. Airports of Thailand Public Company Limited (AOT) gives a target price of 83 baht, believing that AOT shares should trade at a premium level. Because it is the biggest beneficiary of the tourism recovery among open city stocks. and a near-monopoly airport operator in Thailand with a strong EBITDA CAGR of 200% during 2022-2025, significantly higher than the 6% EBITDA growth during 2016-2019 and the average at 20-30% from the guest group
Additionally, we see that AOT stocks have both short-term and long-term drivers. 3Q23 earnings are expected to increase. This was driven by continued growth in passenger numbers. especially international passengers This will drive revenue streams for passenger services, removing the 50% discount on airport service fees and property rentals. and use the method of collecting benefits from the concession After the support measures end on March 31, 2023 in the middle of the epidemic The method of collecting the new mutual benefit for the concession depends on the minimum annual benefit. or the minimum portion per head multiplied by the number of passengers This resulted in doubling the portion per head.
As for the long-term catalysts, AOT expects to start operating the Suvarnabhumi Airport Phase 2 expansion project in the third quarter of 2023, which can accommodate another 15 million passengers to 60 million, and the third runway construction project in the first half of 2024. .
expanding flight capacity by around 40% to 94 flights per hour The research department does not expect that the two projects will generate a profit in the short term. This is because the incremental depreciation is expected to be recognized at the start of operations. However, these two projects will improve AOT operations in the medium to long term.
UOB Research expects AOT 2Q23 profit to be Bt1.5bn, up 331% QoQ and 145% YoY. driven by the high season in Thailand and the reopening of borders in all regions. This means that the number of passengers in Q2/2023 accounts for 68% of the pre-COVID-19 level. And expect profits in the third quarter to increase from the end of the measures to help tenants. airline operator and concessionaires from the spread of COVID-19
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