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Airports of Thailand Public Company Limited [SET:AOT] operates two principal business segments, which are the airport business and hotel business. The company manages and develops Suvarnabhumi, Don Mueang, Chiang Mai, Hat Yai, Phuket and Mae Fah Luang Chiang Rai airports. Their non-aeronautical activities include office and state property rentals, services and concessions. AOT is also involved in the development of hotels near Suvarnabhumi airport. The company’s subsidiaries include Suvarnabhumi Airport Hotel Company Limited.
AOT said on November 27, 2015, that its full-year 2015 revenues were 43.97 billion baht, beating the 43.28 billion baht consensus estimate of 19 analysts, according to the Financial Times. The company posted full-year 2015 earnings of 11.52 baht per share, beating the 11.10 baht per share consensus estimate of 21 analysts.
For 2014, AOT reported a dividend of 6.54 baht a share, which represented a 92.35% increase from 2013. The 20 analysts covering the company expect dividends of 5.27 baht a share for the upcoming fiscal year, representing a year-over-year decrease of 19.37%. The next earnings announcement from AOT is expected on February 11. The consensus estimates are EPS of 7.91 baht on revenue of 33.07 billion baht for the first-half 2016 and EPS of 13.11 baht on revenue of 49.39 billion baht for the full-year 2016.
Earlier in the month, AOT reported strong increases in both aircraft movements and passengers at the six airports under its management. In the month of November, AOT said the total passengers were 9,476,683, up 13.09% from 8,379,967 during the same month in 2014 while overall aircraft movements increased by 11.84% from 55,804 to 62,410. During the first 11 months of last year, 48.01 million passengers traveled through the Thailand main gateway, Bangkok’s Suvarnabhumi airport, followed by Don Mueang with 27.42 million and Phuket with 11.60 million. Chiang Mai Airport handled 7.53 million passengers.
In late December, AOT opened part of Terminal 2 of Don Mueang airport to serve passengers and to ease congestion during the holiday travel season. Terminal 2 is expected to become fully operational by February, which will open up more concession space available to lease, meaning more revenue for AOT. Don Mueang is the busiest low-cost carrier airport in Asia, according to AOT.
Tourism Minister Kobkarn Wattanavrangkul told Reuters last week that international tourists to Thailand should reach a record 32 million in 2016, compared to 29.88 million in 2015. About 8 million Chinese tourists are expected to visit Thailand this year, compared to 8.3 million last year.
From our technical viewpoint, AOT stock has been rising in an ascending wedge chart pattern to the top end of the range. As long as the revenue and earnings per share keep rising, the stock could break out to new highs. There is some downside risk if the yuan continues to weaken further. According to Hong Kong-based CLSA, over 40% of Chinese tourists might reduce the number of trips they take this year if the yuan depreciates another 10%.
Disclosure: No position and no recommendation. |
