On Thursday at 11:20 AM (Bangkok time), the share price of Airports of Thailand Public Company Limited (SET: AOT) slumped by 8.00% or THB 3.00 to THB 34.50, with a trading value of THB 2.33 billion.
CGS International Securities (Thailand) (CGSI) reported that AOT posted a net profit of THB 5.05 billion for the second quarter of fiscal year 2025 (January-March 2025), marking a 13% decrease year-on-year and a 5% drop quarter-on-quarter. This result fell short of both the analyst’s and Bloomberg’s expectations of a 13% and 15% decline, respectively, due to reduced concession revenues.
Although AOT did not specify the reasons for the decline, the analyst noted that it could be attributed to concession fees from King Power being lower than anticipated, despite a 3% quarter-on-quarter increase in international passenger volume.
Concerns regarding King Power’s liquidity remain a negative factor amidst global macroeconomic uncertainties and weak duty-free spending. Coupled with a drop in tourist numbers and potential concession revenue decreases, CGSI maintained a ‘Sell’ recommendation for AOT with a target price of THB 37 per share.
DAOL Securities upheld a ‘Hold’ recommendation on AOT, but has adjusted the target price down to THB 47.00 (from THB 52.00). This follows AOT’s report of a net profit of THB 5.1 billion for the second quarter of 2025 (-13% YoY, -5% QoQ), which is lower than the consensus and the analyst’s estimates of THB 5.9 billion and THB 5.7 billion, respectively.
The decline in concession revenue, primarily from the duty-free segment, was a key factor, dropping to THB 5.2 billion—19% lower year-on-year and 8% down quarter-on-quarter, compared to the initial estimate of THB 5.8 billion. Simultaneously, passenger numbers increased at a sluggish pace to 34.7 million, recording an 8% rise year-on-year and a 3% quarterly gain, amid a slowdown in international passenger growth.
Earnings forecasts for AOT in fiscal year 2025 by the analyst have been revised down by 8% to THB 18 billion, representing a 6% YoY decrease, primarily due to declining concession revenue.
Profits for the first half of fiscal year 2025 represented 57% of the yearly total; however, profits for the second half are anticipated to decrease both year-on-year and half-on-half. This is largely due to the tourism low season, with a projected drop in international passenger figures, influenced by a reduction in Chinese tourist numbers and the impact of trade war dynamics that lead travelers to be more cautious with their spending and postpone travel plans.
Similarly, notable analysts from CLSA Securities, DBS Vickers Securities, and JP Morgan have shared their perspectives on AOT. CLSA maintains a ‘Hold’ rating with a target price of THB 37.00. In contrast, DBS Vickers and JP Morgan have lowered their ratings for the company to ‘Hold’ and ‘Underweight,’ setting their respective target prices at THB 45.00 and THB 32.00.
