- AOT’s net income for the second quarter was 5.78 billion baht, slightly below the estimated 5.92 billion baht.
- Revenue for the period hit 18.40 billion baht.
- Aeronautical revenue and non-aeronautical revenue accounted for 8.36 billion baht and 9.87 billion baht respectively.
- The basic earnings per share (EPS) was 0.40 baht, meeting the estimate.
- Total expenses for the quarter were 10.22 billion baht.
- 2Q net profit grew by 210.9% year over year (y/y), and total revenue increased by 65.9% y/y.
- From October 2023 to March 2024, AOT’s air traffic volume totalled 367,032 flights, marking a 16.9% y/y increase due largely to the Thai government’s visa-free policy and the Chinese New Year festivities.
- The passenger count between October and March was 61.2 million (up 23.8% y/y), with 36.8 million of them being international passengers.
- The company’s debt-to-equity ratio stood at 0.66 time as of March, while its liquidity ratio was at 1.06 time.
- AOT is working on its 10-year airport development master plan to service 150 million passengers per year which includes a third runway at Suvarnabhumi Airport and passenger terminal expansion projects.
- Ratings for AOT stand at 21 buys, 4 holds, 2 sells.
Airports of Thailand on Smartkarma
Analyst coverage of Airports of Thailand on Smartkarma has been mixed. Henry Soediarko‘s report titled “Airport of Thailand (AOT): Near Term Gain” suggests that AOT is attracting Chinese tourists with various initiatives, although the valuations are considered high. Soediarko advises a short-term buy strategy but warns about potential lagging earnings compared to peers if discounts to airlines continue for over 12 months.
In contrast, Soediarko’s second report, “AOT Vs MAHB: Part Deux,” leans bearish on AOT due to rising labor expenses impacting net margins unfavorably. The report highlights the contrast with Malaysia Airports Holdings (MAHB), which has managed to control costs better. Soediarko advises booking profits on half of the exposure to AOT and monitoring labor expenses in the upcoming quarter for future investment decisions.
A look at Airports of Thailand Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Airports of Thailand shows a promising long-term outlook. With high scores in Growth and Momentum, the company seems well-positioned for future expansion and market performance. The strong Growth score indicates potential for increasing revenues and profitability, while the Momentum score suggests positive market sentiment and investor interest in the company. Although the Value and Dividend scores are moderate, the overall outlook remains positive due to the high scores in Growth and Momentum.
Airports of Thailand Public Company Ltd., known for operating key airports in Thailand including Bangkok International Airport and New Bangkok International Airport, demonstrates a solid performance potential according to the Smartkarma Smart Scores. The company’s presence in major airports along with provincial airports in popular tourist destinations positions it well for capturing growth opportunities in the aviation sector. With an overall positive outlook driven by high scores in Growth and Momentum, Airports of Thailand appears to be on a path towards sustained success and expansion in the long-term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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