Airports of Thailand

Airports of Thailand Plc (AOT)

Structural drivers in place. While we note the recent market sell-off, we believe the two structural drivers for AOT's business remain intact: the rising middle class of the emerging economies and the sustained expansion of low-cost carriers. In this report, we highlight ten facts about Thailand's air travel and airports, providing a platform to track the country's air travel market in general and AOT's operations in particular. We retain the stock on our OUTPERFORM list with a DCF-based target price of THB60 (9.2% WACC, 5% p.a. normalised volume growth until FY30 and 2% p.a. price inflation thereafter). Potential share price catalysts are strong sustained traffic and progress in AOT's planned passenger service charge hike.