Airports Of Thailand Is Preparing For New Heights

Airports Of Thailand

Background

Founded in 2002, Airports of Thailand Public Company Limited’s core activities are management and development of international airports.

AOT runs Suvarnabhumi, Don Mueang, Chiang Mai, Chiang Rai, Phuket and Hat Yai international airports.

[REITs]

Their traffic accounted for more than 780,000 flights in 2016.

Business Description

AOT’s income is drawn from two streams, aeronautical and non-aeronautical revenue.

The majority, 56% of revenue, is sourced from aeronautical income, which comes from aircraft landing and parking charges, passenger service charges and aircraft service charges, that is, fees paid by airlines for use of boarding bridges.

#Suvarnabhumi and #DonMueang airport in Bangkok account for about 80% of passenger throughput

The remaining 44% comes from non-aeronautical revenue and comprises property rental from airlines, government agencies and concession tenants. It also covers fees for items such as check-in counter and airline announcement services. The last portion of non-aeronautical revenue comes from concession fees collected from duty-free shops, food and beverage outlets, airline catering concerns, car parks and advertising.

Suvarnabhumi Airport in Bangkok is Thailand’s main aviation hub, with a capacity of 45m passengers annually. Suvarnabhumi and Don Mueang airport in Bangkok together account for about 80% of AOT’s total passenger throughput.

Leadership

Prasong Poontaneat was appointed Chairman of AOT in 2014. He is also the current Chairman of Export-Import Bank of Thailand. His education consists of B.B.A., LL.B, M.B.A, and Ph.D. from four different universities in Thailand.

New as president, but not new at #AOT

Nitinai Sirismatthakarn has served as President, Director and Secretary of Board of Directors along with other roles within AOT. He is also a Director at Bangkok Aviation Fuel Services Public Company Limited. He completed his Bachelor’s degree in Economics at Chulalongkorn University, Thailand, his Master’s Degree and other certificates at University of Southern California, US, and a Ph.D. in Economics from Florida State University, US.

World Class Benchmarking

Profitable Growth has been excellent at top ranks since 2013. AOT ranked among the best 148 out of 1,480 large Industrials companies worldwide.

Profitability has been a major driver of Profitable Growth and has exhibit identical rankings. Growth has flucutuated in its rankings over the past years.

#AOT ranked among the best 148 out of 1,480 large Industrials companies worldwide

Asset utilization has consistently been ranked the worst in contrast to Profit margin which has consistently maintained its top rank.

Sales growth experienced a drop to #5 in the past 12 months, but not as severe as in 2014. Margin change has had huge swings in the past and ranked #4 in the past 12 months.

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About the Author

Dr. Andrew Stotz, CFA
Dr. Andrew Stotz, CFA is the CEO of A. Stotz Investment Research, a company providing institutional investors with ready-to- invest portfolios in Asia that aim to beat the benchmark through superior stock selection. The company also provides buy- and sell-side clients with financial models to value any company in the world and World Class Benchmarking to determine what companies are financially world class. Previously, as Head of Research at CLSA, Andrew was voted No. 1 Analyst in Thailand in the Asiamoney Brokers Polls for 2008 and 2009. He was also voted No. 1 Analyst in Thailand in the 2009 Institutional Investor magazine All-Asia Research Team Report. Andrew earned his PhD in finance at the University of Science and Technology of China in Anhui province, with a focus on answering questions raised by fund managers and analysts during his career about picking stocks and managing portfolios. In addition, Andrew has been a lecturer in finance for 22 years at various universities in Thailand. Since 2013, he has been the president of the CFA Society of Thailand. He is also the author of How to Start Building Your Wealth Investing in the Stock Market.

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