Airports of Thailand
No breaks for Mr. Immigration Outperform, maintained, Bt46.50 Target price: Bt60.00
Airports of Thailand Plc (AOT)
Strong traffic growth again in Aug. AOT reported another month of impressive traffic growth with the number of passengers travelling through its six airports jumping 21% yoy in Aug. FY-to-date (11MFY11), traffic growth has outpaced our expectation although we keep our profit forecast unchanged in view of possible cost surprises in 4QFY11. We still like AOT for its monopoly on air travel via Thailand, which should remain the destination of choice for leisure travellers. At its current share price, AOT offers good value in light of our DCF-based target price of THB60 (9.2% WACC, 5% p.a. normalised volume growth until FY30 and 2% p.a. price inflation thereafter). We maintain our OUTPERFORM call and potential share price catalysts are strong sustained traffic and progress in AOT's planned passenger service charge hike.
