First Read: Airports of Thailand "Q226: Strong results as expected" (Neutral)

Research evidence excerpt

First Read: Airports of Thailand "Q226: Strong results as expected" (Neutral)

ed bottom-line expansion. 09/26E 1.30 1.39

09/27E 1.98 2.10

Has the company's outlook/guidance changed? 09/28E 2.18 2.26

Management’s near-term stance remains cautiously constructive. Continued traffic

Sukrit Friestad

normalisation, particularly on the domestic side, is guided to support aeronautical

Analyst

growth. However, elevated fuel costs and geopolitical tensions are weighing on sukrit.friestad@ubs.com

international demand and airline capacity. In response, AOT has introduced near-term +662-613 5732

incentives, including fee discounts and slot-related subsidies, which should underpin

traffic but could dilute yields. Structural drivers remain intact, notably the planned

passenger service charge increase (effective June 2026) and longer-term commercial and

capacity expansion. That said, persistently weak concession performance suggests a

slower rebound in non-aeronautical earnings. As a result, near-term earnings delivery is

likely to rely more on traffic growth than margin expansion.

Valuation: Neutral; DCF-based price target of Bt58/share

We expect limited market reaction to this set of results, as investors appear to be looking

beyond the solid print to potential implications of the Middle East conflict on H226

earnings. In particular, concerns are building around a potential slowdown in long-haul

demand. On balance, we view AOT’s current risk-reward profile as evenly poised and

therefore maintain our Neutral rating on the stock.

Highlights (Btm) 09/23 09/24 09/25 09/26E 09/27E 09/28E 09/29E 09/30E

Revenues 48,141 67,121 66,679 67,102 80,238 85,486 89,554 93,668

EBIT (UBS) 14,359 27,023 24,550 25,195 36,947 40,332 41,713 43,272