On Friday, the share price of Thai Airways International Public Company Limited (SET: THAI) closed the morning session at THB 7.15, a THB 0.30 or 4.38% increase with a total trading value of THB 902.70 million.
The surge in THAI’s share price was supported by the prospect of inclusion in the SET50 Index for the second half of 2026. The Stock Exchange of Thailand (SET) is preparing to review the list of securities for index rebalancing. This outlook has begun to gain investors attention, as stocks that are included in the major index typically receive supportive sentiment, along with potential inflows from passive funds ahead of the effective date.
Asia Plus Securities estimated that THAI is among the stocks with a high chance of being selected for the new round of SET50 inclusion. This reflects the company’s return to institutional investors’ radar after successfully completing its business rehabilitation and resume trading in the Thai bourse.
Meanwhile, Krungsri Securities recommended a “Buy” rating for THAI with a target price of THB 7.22, noting that the sharp decline in oil prices is a direct positive for the airline business. This is because THAI’s fuel costs account for about 40% of its total expenses, while travel demand remains on a recovery trend.
Additionally, the potential inclusion of THAI in the SET50 Index could offer another key short-term upside for the share price due to expectations of new investment inflows from fund portfolio rebalancing. In terms of valuation, THAI is currently trading at an EV/EBITDA multiple of around 7 – 8 times, which is still considered at the lower end compared to global full-service airlines.
THAI resumed trading on the SET on August 4, 2025, after an exit of over four years due to its business rehabilitation under bankruptcy law during 2020-2025. The company underwent restructuring, cost reduction, debt-to-equity conversions, capital increases, and various financial restructurings, returning to consistent operational profits during 2023-2025.
Historically, THAI was once included in the SET50 Index from January 1 to June 30, 2017, before being removed and subsequently entering the rehabilitation process. If THAI is selected for SET50 inclusion in this round, it will mark another significant sign of its full-scale return to the capital market.
However, this assessment is only the perspective of the analyst and not the official list from the SET. Investors are advised to closely monitor the announcement of the SET50 securities list for the second half of 2026, and to carefully consider company fundamentals, performance, oil prices, and risks in the aviation industry before making investment decisions.
