AAV Watches AAGB's $1 Billion Fundraising, Target Price 1 Baht

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Summary · why it matters

Yuanta Securities says AAV is once again facing a test of its strength amid liquidity concerns. AirAsia Group Bhd., or AAGB, has denied rumors that it sought government assistance and confirmed that its fundraising plan stands at about 1.0 billion US dollars during December 2026 to January 2027, below the rumored 3.0 billion US dollars. The main purpose is to refinance high-cost debt from the COVID-19 period. Meanwhile, AAV plans a sale-and-leaseback of two aircraft in the second half of 2026, expected to raise about 2.0 billion baht in cash, with one more aircraft eligible for such a transaction. The company believes it has sufficient liquidity to refinance 1.5 billion baht of debentures in the fourth quarter of 2026. AAGB expects the second quarter of 2026 to mark the bottom of its operating results and will focus on preserving profitability in the third quarter of 2026, the low season, by cutting capacity by about 20 to 25 percent year on year. As of the end of the second quarter of 2026, AAV had net receivables of about 11 billion baht, from 14 billion baht in receivables minus 3.3 billion baht in payables, and expects that figure to hold steady in the third quarter of 2026 before gradually declining in the fourth quarter of 2026 and in 2027. The analyst maintains a TRADING recommendation with a fair value at the end of 2027 of 1.00 baht.

Impact on assets 1

Industrials▲ · 1 stocks
Asia Aviation Public Company Limited
AAV
± MixedCapitalrelevance

AAV plans sale-and-leaseback of two aircraft to raise ~2bn baht and faces liquidity concerns over refinancing 1.5bn baht of debentures, with a TRADING call and 1.00 baht fair value.

Off-coverage companies 1

Capital A BerhadPrivate± Mixed
Capitalrelevance

Capital A is the parent of AAGB, whose $1bn fundraising plan and denial of seeking government assistance are discussed; no direct Capital A-specific development.

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