Airports of Thailand
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Gaining altitude OUTPERFORM - Maintained Share price: Bt56.00 Target price: Bt74.00
Airports of Thailand Plc (AOT)
The imminent recommissioning of the old Bangkok airport is expected to provide the company with cheap capacity to take on growth. Furthermore, AOT’s cash profit has been strong while accounting profit is gaining traction. On account of reinstalled capacity of the old Bangkok airport and a delayed capex schedule, our DCF-based target price (9.5% WACC, 2% LTG) is higher. We also raise our FY12-14 core net profit estimates mainly due to lower depreciation. AOT remains our top pick for the Thai tourism story. Maintain Outperform.
