On Friday at 10:34 AM (Bangkok time), the share price of Asia Aviation Public Company Limited (SET: AAV) rose by 2.27% or THB 0.06 to THB 2.70, with a trading value of THB 164.44 million.
Kasikorn Securities (KS) stated that AAV is experiencing strong optimism due to PBOC’s announced plan for economic stimulus measures and the upcoming Golden Week, which are poised to significantly boost the influx of Chinese tourists to Thailand.
The rising number of Indian visitors and plans for flight route expansions linking major Indian cities are also seen as key drivers for AAV’s revenue growth. Furthermore, the decline in oil prices is set to lower operational costs for the company, potentially leading to increased profits. The analyst has recommended a ‘BUY’ rating for AAV, setting a target price of THB 3.22 per share.
Moreover, Finansia Syrus Securities (FSS) gives a ‘BUY’ recommendation for AAV, with a target price of THB 3.30 per share. The analyst foresees a positive performance trajectory for AAV in 3Q-4Q24, driven by seasonal trends. Notably, the Load Factor for July to August 2024 stood at 91-92%, with ticket prices witnessing an increase of 13-16% to THB 1,950-2,000.
The appreciation of the Thai baht has also contributed to positive sentiment surrounding AAV. For every 1 baht strengthening, the company stands to gain approximately 1 billion baht in exchange rate profits.
The 17% year-to-date decrease in crude oil and aircraft fuel prices presents another favorable scenario for the company’s operational costs. Additionally, the potential reduction in the jet fuel excise tax rate poses an upside risk to the analyst’s projections.
