Airports of Thailand rose 2.52 percent to a record high of 71.25 baht amid brokers’ expectations that recent commercial deals with King Power Duty Free Co and The Mall Group could boost its revenue by 10 percent per annum through the course of the 10-year contract.
AOT said on Monday that King Power and The Mall Group were awarded 10-year contracts to operate commercial spaces at Bangkok’s Don Muang Airport. The airport is scheduled to reopen for international flights on Oct. 1, 2012.
DBS Vickers Securities gave AOT a ‘buy’ rating with target price at 78 baht.
“[The effects] are positive and in line with our expectations. [The move] will help raise cash for the company as King Power and The Mall had agreed to provide a minimum return of 1 billion baht per year,” DBS said in a research note.
“We like AOT and chose it as our top pick within the transport sector, seeing that it will benefit from the rise in Thailand’s travel demands, being a single operator, and limited business risks,” the broker added.
Several other brokers also rated the shares ‘buy’ on hopes that the commercial contracts will boost AOT’s revenue.
At 0359 GMT, AOT shares were up 2.16 percent at 71 baht, while the main Thai index gained 0.04 percent.
Reporting by Sinsiri Tiwutanond in Bangkok; firstname.lastname@example.org