KGI upgrades transport sector to overweight, picks AOT as top pick with 71 baht target

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โดย HoonVision·TH·Read original
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KGI Securities (Thailand) has upgraded its investment weighting for the transport sector to "overweight" from "neutral," selecting Airports of Thailand, or AOT, as its top pick with a 2027 forecast DCF-based target price of 71.00 baht. The move follows discussions on economic stimulus measures between Deputy Prime Minister and Finance Minister Dr. Ekniti Nitithanprapas and Tourism and Sports Minister Surasak Phanchareonworakul, with the proposals expected to go before the Cabinet for consideration within one to two weeks. The program will offer 1 million entitlements, comprising a fixed accommodation subsidy of up to 1,500 baht per night per entitlement, capped at no more than 5 entitlements per person, and co-payment travel coupons worth 1,500 baht per entitlement in major cities and 2,000 baht in secondary cities. Registration opens from October 1 to 25, 2026, with usage permitted in two periods: November 1 to December 15, 2026, and January 15 to February 28, 2027. The scheme should boost domestic travel demand and benefit domestic airlines such as Thai AirAsia, Bangkok Airways, Nok Air, and Thai Airways. For AOT, the company is expected to enjoy a full quarter of benefit from the new increase in the international passenger service charge to 1,120 baht per person from the previous 730 baht per person, starting in the third quarter of 2026. Thai Airways is meanwhile expected to remain profitable in the third quarter of 2026 on high yields and an optimal cabin factor, with fourth-quarter 2026 profit forecast to grow strongly quarter-on-quarter in line with the tourism season.

Impact on stocks 3

Industrials▲ · 2 stocks
Airports Of Thailand PCL
AOT
▲ PositiveCapitalPricingrelevance

KGI upgrades transport sector to overweight and names AOT its top pick with a 71 baht target price.

Aerospace & Aviation▲ · 1 stocks

Off-coverage companies 1

Nok Airlines PCLPrivate▲ Positive
Demandrelevance

Tourism stimulus program expected to boost domestic travel demand, benefiting domestic airlines such as Nok Air.

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