Earnings Report /
Thailand

Asia Aviation PCL: Deeper red ink, but recovery expected next quarter

  • Deep net and core losses reported

  • AAV reported a 1Q22 net loss of Bt2,371m

  • Revenue increased by 56% YoY and 17% QoQ

Kijapat Wongmetta
Kijapat Wongmetta

Equity Research Analyst

Bualuang Securities
17 May 2022

Despite the deep red ink, we expect the market to look forward to a full recovery in 2024 and a good long-term outlook for AAV (a bigger market share in the post-COVID era). Moreover, when Beijing lifts its zero-COVID policy, we anticipate that the stock price will shoot up. BUY!

Deep net and core losses reported

AAV reported a 1Q22 net loss of Bt2,371m, deeper into the red by 27% YoY and 139% QoQ. The net loss was 98% deeper than our estimate (a much heavier cost-of-sales than assumed). Stripping out extra items, AAV’s core loss would be Bt2,258m, deeper into the red by 107% YoY and 106% QoQ. The core loss was 88% deeper than our estimate (a heavier cost-of-sales than assumed), but was in line with the consensus.