Airports of Thailand

Airport of Thailand Plc (AOT)

AOT’s airport assets still offer great prospects. Thailand remains a destination of choice for a growing pool of regional travellers and AOT stands to benefit from expanding rival airlines that are competing to fly them here. We continue to prefer AOT to Thai Airways. We keep our Outperform rating and DCF-based target price (9.5% WACC, 5% volume growth until FY30 and 2% price inflation thereafter). Potential share price catalysts include a return of strong traffic growth after the floods and progress on the planned PSC hike.