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Bangkok Aviation Fuel Services
Kim Eng Securities (Thailand) has maintained its "accumulate" rating on Bangkok Aviation Fuel Services (BAFS), with a fair-value estimate of Bt10.90.
BAFS is expected to post a fourth-quarter 2006 net profit of Bt84 million, or earnings per share (EPS) of Bt0.20, a rise of 30 per cent year on year. This strong growth will be due to the booking of revenue and earnings from the new airport for a full quarter, offsetting the impact of the baht's rise against the dollar and large staff bonus expenses in the fourth quarter. The company's uplift volume rose 3.6 per cent year on year, while service fees almost doubled. For the whole of last year, the broker expects BAFS to report net profit of Bt422 million, or EPS of Bt0.99, up one per cent on 2005. Although Suvarnabhumi Airport is helping lift BAFS' revenue and earnings, it is also expected to lead to higher depreciation expenses of about Bt420 million this year. Another negative factor for the company is the baht's appreciation. The brokerage has revised its baht assumption from Bt38 to the dollar to Bt36 for this year. As a result, it has lowered its 2007 earnings projection for BAFS by 7 per cent to Bt461 million, resulting in expected annual growth of 9 per cent. The brokerage expects the company to pay a second-half dividend of Bt0.30 per share, following the interim dividend of Bt0.20 for the first half.
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