Triple i Logistics Public Company Limited

Tip Dalal, Chief Executive Officer of Triple I Logistics Public Company Limited, or III, said the logistics business from late in the third quarter through the fourth quarter of 2026 is entering the high season, particularly in October and November, driven by rising demand for freight transport in nearly all customer groups. As a result, freight rates are trending higher in line with market mechanisms. With oil costs rising, the company manages risk through a pass-through mechanism, clearly separating fuel surcharges from service fees. In the cargo flight business, the company is shifting from charter flights to scheduled flights and expects greater clarity in the fourth quarter of 2026, focusing on routes to Vietnam, Myanmar and India. In the chemical warehouse business, the company plans to expand its space from about 26,000 square metres at present to at least 32,000 to 33,000 square metres by the end of 2026. Following better-than-expected first-half results, the company has raised its 2026 growth target from about 10 to 15 percent to no less than 20 percent. As for its investment in AOT Ground Aviation Services, or AOTGA, after the cabinet approved the investment project in the Suvarnabhumi airport area with a total value of more than 67 billion baht, the company holds an indirect stake in AOTGA through its holding in SAL of about 25 percent, while SAL holds 50 percent of AOTGA. AOTGA has two concession contracts with a term of 25 years. The first covers ground handling services, for which details are being negotiated and are expected to take about two to three months, with services likely to begin late in 2026 or early in 2027. The second contract covers cargo terminal services, which requires construction of a new cargo warehouse expected to take nearly two years. The company estimates that over the long term, about five years, once services are fully expanded into Suvarnabhumi, this will help drive AOTGA's earnings to grow by roughly another twofold.

Vision Stock - Yuanta Securities stated that the Cabinet has given the green light for AOT to sign the AOTGA contract, proceeding with two mega projects: "Ground Services and Third Cargo Terminal" at Suvarnabhumi Airport, with a total investment of 67.3 billion baht. The public-private partnership will run at full capacity for 25 years, enhancing capacity to accommodate a 4% surge in winter slots, positioning Suvarnabhumi as a regional aviation hub. This is seen to boost AOT's profits by an upside of 5%, leveraging synergies to strengthen bargaining power with airlines. SKY-III also stands to benefit long-term, as the AOTGA project has a 25-year contract term, with an expected market share of 15-20%, generating profits of around 700-1,000 million baht per year. SKY holds a net stake of approximately 24% in AOTGA, while III holds about 13%, which is positive for both stocks. For SKY, this project extends its existing aviation technology business into a comprehensive offering under a long-term contract. The company targets revenue growth of around 20% YoY in 2026, with continued growth expected in 2027. Meanwhile, III benefits from vertical integration and a concession period of up to 25 years, with its 2026 normal profit forecast revised to 454 million baht, up 12% YoY, and 2027 to 499 million baht, up 10% YoY.

The Cabinet has approved the results of the private sector selection and the draft joint investment contracts for two projects at Suvarnabhumi Airport, appointing Thai Airport Ground Services Company Limited (AOTGA) as the joint investor for both the apron and ground equipment services project and the cargo warehouse project, which will be operated under a PPP Net Cost model for 25 years. The ground services project will enhance capacity to support air traffic, while the cargo warehouse project covers inbound, outbound, transit, perishable, express, and e-commerce cargo services. Following the approval, Airports of Thailand (AOT) can immediately sign contracts with AOTGA, which is expected to support the region's aviation hub status. Meanwhile, research from Yuanta Securities (Thailand) indicates that the approval is a positive factor for Sky Tower Public Company Limited (SKY), which holds approximately 24% of AOTGA, and Triple I Logistics Public Company Limited (III), which holds approximately 13%, viewing the 25-year long-term project as beneficial to both companies.

The Q2/2026 results of the transport and logistics group, comprising SJWD, ANI, III, and WICE, reflect a significant recovery. ANI posted a net profit of 261.7 million baht, up 92.5% year-on-year and 130.6% quarter-on-quarter. III's net profit was 140.9 million baht, up 91.6% year-on-year. SJWD reported revenue of 7,064.8 million baht and net profit of 463.5 million baht, up 64.0%. WICE's net profit was 29.0 million baht, up 24.8%. For the first half, SJWD had total revenue of 13,397.0 million baht and net profit of 739.9 million baht, up 14.2%. ANI had revenue of 3,882.4 million baht and net profit of 375.2 million baht, up 36.9%. III had revenue of 1,330.5 million baht and net profit of 235.9 million baht, up 29.5%. WICE had revenue of 2,800.9 million baht and net profit of 48.3 million baht, down 39.2%. III had the highest net profit margin at 17.7% and the lowest P/E at 9.2 times, while ANI had the highest dividend yield at 5.6%.

Triple i Logistics Public Company Limited, or III, announced second-quarter 2026 results with net profit of 140.9 million baht, up 91.5% from the same period last year and up 48.2% from the previous quarter, marking the highest net profit in 10 quarters. Total revenue was 725.6 million baht, up 12.9% year-on-year and up 19.9% quarter-on-quarter. Growth was driven by all three core business groups: air cargo transportation, logistics for chemicals and dangerous goods, and logistics management. Share of profit from associates was 115.8 million baht, up 61.7% year-on-year, as ANI recognised higher profit from its airline cargo sales agency business, while AOTGA's profit declined due to investment expenses for service expansion. As a result, first-half 2026 total revenue reached 1.33 billion baht, up 13.3%, and net profit totalled 235.9 million baht, up 29.5% from the previous year. For the second half, the company is confident in continued growth from the high season and its Aviation Ecosystem strategy, including charter flight services and fixed-schedule freighter services in the fourth quarter, along with an additional 5,000 square metres of chemical warehouse space. The company is also in talks on two to three merger and acquisition deals expected to close in 2026. It is therefore confident in raising its 2026 growth target from 15% to 20%.

Yuanta Securities forecasts that Triple I Logistics Public Company Limited, or III, will post a normalised profit of 118 million baht in the second quarter of 2026, up 24% from the previous quarter and 40% from a year earlier, supported by higher air freight rates amid supply disruptions during the war. Total revenue is projected at 690 million baht, rising 14% quarter-on-quarter and 7% year-on-year, with the air freight business seeing strong demand and reduced airline capacity, pushing average freight rates in the current quarter up 26% from the prior quarter and 30% from a year ago. Gross margin is expected to improve to 20.0%. Profit contribution from associate ANI is forecast to grow strongly to 110 million baht, an increase of 22% from the previous quarter and 54% from a year earlier, benefiting from the same trends as the air freight business and recognising backdated revenue from the expansion of overseas service bases. The normalised profit trend for the third quarter is expected to be stable to growing, driven by seasonally higher cargo volumes and a recovery in profit share from AOTGA as Thai tourism rebounds. The fourth quarter is projected to be the strongest quarter on seasonal factors, with potential upside if III obtains a full air cargo carrier licence within the fourth quarter of 2026. The broker maintains a buy rating with a target price of 5.50 baht.