Yuanta Securities stated that Airports of Thailand, or AOT, reported net profit of 4.4 billion baht for the third quarter of fiscal 2026, down 22% from the previous quarter but up 15% from a year earlier. Normalised profit was 3.8 billion baht, down 35% from the previous quarter and up 3% from a year earlier, coming in 18% above market and broker expectations thanks to better-than-expected control of staff expenses. Aeronautical revenue was 7.7 billion baht, down 22% from the previous quarter but up 3% from a year earlier, helped by the increase in outbound passenger service charges effective from 20 June 2026, which offset total passenger numbers of 27.7 million, down 25% from the previous quarter and 4% from a year earlier. Non-aeronautical revenue was 7.3 billion baht, down 16% from the previous quarter and 8% from a year earlier, due to the reduction in minimum guaranteed revenue per head for duty-free concessions at all five airports by 29% to 37% from October 2025. Reported gross margin was 39.4%, down 672 basis points from the previous quarter but up 120 basis points from a year earlier, better than the 35% expected, as a revision to employee bonus estimates reduced employee benefit expenses by 17% from the previous quarter and 13% from a year earlier. The broker noted that Thailand's tourism recovery is happening gradually, reflected in total flights and passengers during 1 to 8 August stabilising from a year earlier and rising 2% from a year earlier respectively, an improvement from declines of 2% to 3% from a year earlier in July. It expects fourth-quarter fiscal 2026 results to grow from the previous quarter even though it is the low season, and to return to strong year-on-year growth for the first time in seven quarters. For 2027, normalised profit is expected to return to a strong growth cycle of 39% from a year earlier to 27 billion baht, supported by a full year of the new outbound passenger service charges and the tourism recovery. The broker maintained a trading recommendation based on a fair value of 67.00 baht, noting that in the short term the stock has a chance to react positively to better-than-expected results, but limited upside reduces its valuation appeal. It recommends cautious speculative trading or waiting to accumulate when the stock consolidates around support at 63.00 and 61.00 baht.
Airports Of Thailand PCLBroker expects 39% profit jump in 2027 and sets target at 67 baht, with Q3 results beating expectations.
