Airports of Thailand PCL: Loss in 2Q21 was in line with our estimate but beat the street forecast
- In line with our estimate but ahead of the consensus forecast
- AOT posted a net loss of Bt3.4bn for 2Q21
- Weak result YoY was due to high base in 2Q20
We recommend investors accumulate AOT at good entry price nearly Bt60, a 28% share price drawdown from pre COVID-19 year in 2019. Risk-reward is worth it for long-term investment due to monopoly benefit on travel/tourism recovery in Thailand. We maintain a FY21 DCF-derived target price of Bt75 (6.8% WACC, 2.5% terminal growth).
In line with our estimate but ahead of the consensus forecast
AOT posted a net loss of Bt3.4bn for 2Q21 (Jan-Mar 2021) versus net profit of Bt3.7bn for 2Q20 (Jan-Mar 2020) and net loss of Bt3.4bn in 1Q21 (Oct-Dec 2020). Excluding net extra gain (Bt144m of FX gains that was offset by Bt72m loss of derivatives aligned to IFRS9 and Bt8m asset impairment), core 2Q21 loss was Bt3.6bn, in line with our forecast but beating the consensus forecast of Bt4.1bn.
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