On Monday at 2:08 PM (Bangkok time), the share price of Airports of Thailand Public Company Limited (SET: AOT) slumped by 2.58% or THB 1.50 to THB 56.75, with a trading value of THB 1.20 billion.
Asia Aviation Public Company Limited (SET: AAV) declined by 2.50% or THB 0.06 to THB 2.34, with a trading value of THB 74.77 million.
Bangkok Airways Public Company Limited (SET: BA) dropped by 5.29% or THB 1.10 to THB 19.70, with a trading value of THB 98.30 million.
The Erawan Group Public Company Limited (SET: ERW) decreased by 7.56% or THB 0.26 to THB 3.18, with a trading value of THB 150.60 million.
Central Plaza Hotel Public Company Limited (SET: CENTEL) plummeted by 4.80% or THB 1.50 to THB 29.75, with a trading value of THB 49.56 million.
Yuanta Securities (Thailand) noted a slowdown in Chinese tourists booking trips to Thailand for Chinese New Year, attributed to concerns arising from the disappearance of a Chinese actor near the Thai-Myanmar border, resulting in a loss of trust among travelers. This development has adversely impacted shares of AOT, hotel chains, and airlines like AAV and BA, which have also been affected by soaring oil prices.
Meanwhile, the analyst stated that the trust is likely to hinge on governmental actions, with the potential for visitors from other countries to make up for any decrease in Chinese tourist numbers.
Should the share price of AOT fall to around THB 55 per share, the analyst sees this as an opportune moment for stock accumulation and anticipates the company to experience a technical rebound, setting a target price of THB 69 per share.
Pi Securities stated that in light of concerns surrounding the safety of Chinese tourists, government interventions are crucial to rebuild trust. Drawing upon the impact of the past sinking ship incident in July 2018, data showed that the number of Chinese tourists dropped by around 15% year on year in the four months following the event (from August to November).
AOT is projected to achieve a net profit of THB 6,001 million in the first quarter of 2025 (October to December 2024), marking a 32% year-on-year surge and a 41% quarter-on-quarter rise. This growth is credited to a rise in passenger figures. However, the company’s revenue is expected to only grow by 18% year on year and 10% quarter on quarter, potentially hampered by the effects of reclaiming certain areas that commenced in mid-2024.
Pi Securities gives a ‘BUY’ recommendation due to the current price differing from the estimated fair value of THB 63 per share. Over the long term, the analyst maintains a positive outlook on AOT, with the company expected to capitalize on the growth in tourism in Thailand as the government projections indicate a rise in tourist numbers to 38-40 million, up from 35.5 million in 2024.
