AOT Shares Plunge After Disappointing Earnings Report
Shares of airports of Thailand (AOT) experienced a meaningful drop following the release of its second-quarter fiscal year 2025 (January-March) earnings report.the report revealed a profit of 5.1 billion baht, which fell short of expectations.
Market Reaction
At 10:17 a.m., AOT shares plummeted 7.33%, settling at 34.75 baht, a decrease of 2.75 baht. Trading volume reached 1,327.07 million baht, with the stock opening at 34.50 baht, peaking at 35.50 baht, and hitting a low of 34.50 baht.
Krungsri Securities’ analysis
Krungsri Securities issued a negative assessment of AOT’s second-quarter performance. The firm highlighted that the 5.1 billion baht profit was lower than expected by the profit -13% YOY,-5% QoQ from the revenue of the concession benefits. And SG & A and higher tax rates.
Future Outlook
The securities firm anticipates a potential decline in profits after 2025’s second quarter, attributing this to the low season. This factor could lead to more downside from the original
for AOT’s operating results. The research department is currently reassessing its estimates.
Earning Result Meeting Insights
Despite the overall negative outlook,Krungsri Securities expressed a Slightly Positive
view based on facts gleaned from the 2Q15 Earning result meeting. The profit decrease in the second quarter of 2025 was partly due to a one-time cost of approximately 900 million baht.
Concession Refund and Special Costs
AOT’s second-quarter results were impacted by an 800 million baht concession refund, stemming from delays in opening the SAT-1 building. Additionally, the company incurred approximately 100 million baht in special costs related to the SAT-1 building’s opening ceremony.
King Power Payment Concerns
concerns linger regarding King Power’s ability to meet its minimum payment obligations. Though, it is indeed expected that King Power can pay the minimum return in May 2022.
It is speculated that the 800 million baht concession refund may assist King Power in meeting its minimum compensation requirements.
Revised Targets and Risk Assessment
The research department is actively reviewing AOT’s target and target price, taking into account the potential risk of lower-than-expected tourist numbers in 2025 and the ongoing risk associated with King Power’s payments. Further instructions will be provided after a thorough consideration of these factors.
