Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Equity Bottom-Up

<ul><li>We downgrade our rating to Outperform from Buy and revise the 12-month fair value (FV) down to Bt68.00 from Bt72.00, based on an earnings yield of 2.4%.</li><li>This adjustment follows an upward revision to our market risk premium (MRP), resulting in a higher required return, up from the previous 2.3%.</li><li>KTX’s <span style="font-size: var(--content-font-size);">valuation metrics suggest a strong outlook for the long-term </span>growth prospects for FY25-27E, with expected EPS growth of +15%. </li></ul>

We downgrade our rating to Outperform from Buy and revise the 12-month fair value (FV) down to Bt68.00 from Bt72.00, based on an earnings yield of 2.4%.This adjustment follows an upward revision to our market risk premium (MRP), resulting in a higher required return, up from the previous 2.3%.KTX’s valuation metrics suggest a strong outlook for the long-term growth prospects for FY25-27E, with expected EPS growth of +15%. 

Airports of Thailand - 4QFY24E Earnings to Decline QoQ; FY2025E NP to Remain Strong

<ul><li>Mr. Keerati Kijmanawat, AOT's president, shared details on upcoming projects:</li><li>1) East expansion project: Valued at Bt10bn, the project will be presented to the AOT board in September before being submitted to the Cabinet.</li><li>Bidding is expected to open in December 2024.</li><li>2 ) Third ground service provider and cargo project at Suvarnabhumi Airport, with a total budget of Bt67bn: The invitation for private sector investment under the PPP model is now expected in September, delayed from the original August timeline due to ongoing drafting of the TOR bidding conditions.</li></ul>

Mr. Keerati Kijmanawat, AOT's president, shared details on upcoming projects:1) East expansion project: Valued at Bt10bn, the project will be presented to the AOT board in September before being submitted to the Cabinet.Bidding is expected to open in December 2024.2 ) Third ground service provider and cargo project at Suvarnabhumi Airport, with a total budget of Bt67bn: The invitation for private sector investment under the PPP model is now expected in September, delayed from the original August timeline due to ongoing drafting of the TOR bidding conditions.

<ul><li>We initiate coverage on AOT with a Buy rating and a 12-month fair value (FV) of Bt72.00, based on an earnings yield of 2.3%.</li><li>The valuation metrics indicate upside potential of +21%, with core EPS for FY24-26E expected to grow at a CAGR of +24%, driven by revenue and profits surpassing pre-COVID levels.</li><li>The tactical downside risk is limited, as the recent declines in the share price have already factored in the impact of returning commercial areas and the closing of inbound duty-free operations.</li></ul>

We initiate coverage on AOT with a Buy rating and a 12-month fair value (FV) of Bt72.00, based on an earnings yield of 2.3%.The valuation metrics indicate upside potential of +21%, with core EPS for FY24-26E expected to grow at a CAGR of +24%, driven by revenue and profits surpassing pre-COVID levels.The tactical downside risk is limited, as the recent declines in the share price have already factored in the impact of returning commercial areas and the closing of inbound duty-free operations.

Airports of Thailand - Revenue and Earnings to Exceed Pre-COVID Levels

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

<ul><li>What you need to know about the SG market #whatstrending feat. #whatstrending is a series addressing some of the most trending questions/topics on the markets for investors.</li><li>What’s Trending: How Airports of Thailand (AOT) Could Benefit From The Nation Waiving Visa Requirements for Chinese Tourists #2 - Increasing tourist arrivals.</li></ul>

What you need to know about the SG market #whatstrending feat. #whatstrending is a series addressing some of the most trending questions/topics on the markets for investors.What’s Trending: How Airports of Thailand (AOT) Could Benefit From The Nation Waiving Visa Requirements for Chinese Tourists #2 - Increasing tourist arrivals.

What’s Trending: How Airports of Thailand May Benefit From Visa Arrangements

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<ul>
<li>Chinese tourists are back, and the Thai government has launched a series of initiatives to woo them back.</li>
<li>Discounts to airlines offered by <a href="https://www.smartkarma.com/entities/airports-of-thailand-pcl" target="_blank" data-smartkarma-citation="entities:239:1" rel="noopener">Airports of Thailand (AOT TB)</a> will not hurt earnings much, although if extended for &gt;12 months,  AOT earnings could lag their peers.</li>
<li>Valuation is still expensive, although it is expected to normalize once earnings are back. Collapse the RV trade against <a href="https://www.smartkarma.com/entities/malaysia-airports-holdings-bhd" target="_blank" data-smartkarma-citation="entities:117:1" rel="noopener">Malaysia Airports Holdings (MAHB MK)</a> and buy for the short term.</li>
</ul>


Chinese tourists are back, and the Thai government has launched a series of initiatives to woo them back.
Discounts to airlines offered by Airports of Thailand (AOT TB) will not hurt earnings much, although if extended for &gt;12 months,  AOT earnings could lag their peers.
Valuation is still expensive, although it is expected to normalize once earnings are back. Collapse the RV trade against Malaysia Airports Holdings (MAHB MK) and buy for the short term.


Airport of Thailand (AOT): Near Term Gain

Thailand

Airports of Thailand Public Company Ltd. operates the Bangkok International Airport (Don Muang) and the New Bangkok International Airport (Suvarnabhumi).. The Company also operates provincial airports in Chiang Mai, Chiang Rai, Hat Yai, and Phuket.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Airports of Thailand (AOT TB)

Airports of Thailand - 4QFY24E Earnings to Decline QoQ; FY2025E NP to Remain Strong

We downgrade our rating to Outperform from Buy and revise the 12-month fair value (FV) down to Bt68.00 from Bt72.00, based on an earnings yield of...

Krungthai XSpring

AOT: Flash News - August 28, 2024

The invitation for private sector investment under the PPP model is now expected in September, delayed from the original August timeline due to...

Krungthai XSpring

Airports of Thailand - Revenue and Earnings to Exceed Pre-COVID Levels

We initiate coverage on AOT with a Buy rating and a 12-month fair value (FV) of Bt72.00, based on an earnings yield of 2.3%.

Krungthai XSpring

Airport of Thailand (AOT): Near Term Gain

AOT looks interesting right now, as there have been a few initiatives by both the management and the local authority to win tourism market share in...

Henry Soediarko

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Airports of Thailand - 4QFY24E Earnings to Decline QoQ; FY2025E NP to Remain Strong

We downgrade our rating to Outperform from Buy and revise the 12-month fair value (FV) down to Bt68.00 from Bt72.00, based on an earnings yield of...

Krungthai XSpring

AOT: Flash News - August 28, 2024

The invitation for private sector investment under the PPP model is now expected in September, delayed from the original August timeline due to...

Krungthai XSpring

Airports of Thailand - Revenue and Earnings to Exceed Pre-COVID Levels

We initiate coverage on AOT with a Buy rating and a 12-month fair value (FV) of Bt72.00, based on an earnings yield of 2.3%.

Krungthai XSpring

What’s Trending: How Airports of Thailand May Benefit From Visa Arrangements

What you need to know about the SG market #whatstrending feat. #whatstrending is a series addressing some of the most trending questions/topics on...

Singapore Exchange Ltd (SGX)

Airport of Thailand (AOT): Near Term Gain

AOT looks interesting right now, as there have been a few initiatives by both the management and the local authority to win tourism market share in...

Henry Soediarko