New Revision Sees AOT 2023 Net Profit to Reach THB14 Billion!

96 million passengers from previously anticipated at 46.69 million, are expected to travel through the six airports owned by the Airports of Thailand (SET:AOT).
For that, the company’s overall revenue tends to rise accordingly.


The revision came after Mr. Keerati Kitmanawat President of the AOT revealed, now, around 150,000 passengers are traveling through Suvarnabhumi airport per day, pumping forecasts for the airport passengers to reach 80-90% of the pre-pandemic level in the second half of 2023.


Once include the other five airports under the care of AOT, there will be 96 million passengers for the year.


KGI Securities (Thailand) adjusted the estimated net profit for AOT in 2023 at THB 13.9 billion and in 2024 at THB 27 billion. As international passengers recovered strongly in the second half of the year.


Also, AOT will profit from its commercial concessionary rent revenue from retailers, such as the King Power Group Duty Free shops. The rents are resumed tp be collected at the regular amount. The revenue was previously lowered by almost 50% because of the covid-19 remedial efforts.


Due to these positive factors, KGI recommends to “buy” AOT with a target price of THB 86.00 per share.


Next in July, AOT will also launch a Public-Private-Partneship (PPP) auction to find a thrid operator for a project to supply Aircraft Parking Spaces as well as Ground Services and Equipment at Suvarnabhumi Airport.


The total budget is THB 29,390.76 million with a 25 years concession period.


AOT Ground Aviation Services (AOTGA) is announced to be one of the participators. AOTGA is a holding company held 49% by AOT  and 51% by  Sky ICT Public Company Limited holds  of shares


Whether or not AOTGA will win the bidding, investors will have to wait for the official announcement in July. Until then the strength of the company’s performance will be re-evaluated.