China Eastern Airlines (600115) semi-annual report comment： passenger load levels increase, optimistic about international routes in the second half of the year
China Eastern Airlines (600115) semi-annual report comment: passenger load levels increase, optimistic about international routes in the second half of the year
Matters: The company announced its semi-annual report. In the first half of 2019, the company realized revenue of 587.
84 ppm, an increase of ten years8.
02%, achieving net profit attributable to mother 19.
43 ppm, a decrease of 14 per year.
Ping An’s view: Domestic routes have the highest capacity growth, but the number of load factors has decreased: in the first half of 2019, the company’s ASK increased by 10.
36%, RPK once every ten years.
61%, with an average load factor of 82.
66%, an increase of 0 every year.
Among them, the domestic flight ASK increases by 12 every year.
21%, higher than international routes and Hong Kong, Macao and Taiwan routes, but with a seat of 83.
42%, a decrease of 0 every year.
39 is undoubtedly the only market segment with a decline in load factor.
China, Japan, China and South Korea’s air traffic rights increase, and it is expected that the growth rate of international routes will lead in the second half of the year: In the first half of 2019, China and Japan and China and South Korea will complete a 天津夜网 new round of airway swaps to maximize the rights of China, Japan and China and South KoreaThe scale of the company has increased. As the number one shipping route on the China-Japan route and the number one domestic airline company on the China-Korea route, it is expected that the capacity of these two route markets will increase in the second half of 2019.
In addition, the passenger kilometer revenue of the company’s international routes in the first half of 2019 was zero.
458 yuan, an increase of 0 in ten years.
44%, the performance of the performance is good, it is expected that in the second half of the year will be able to obtain higher returns from the international airline market.
Investment suggestion: According to market feedback in the first half of 2019, the growth of business travellers has increased significantly, resulting in a decline in the revenue of domestic airline units. Taking into account exchange rate risks, we lower our forecast and predict that the company will belong to the parent company in 2019, 2020 and 2021.Net profit from 77.
9.5 billion, 94.
75 ppm and 113.
77 trillion is adjusted to 47.
5.4 billion, 69.
5.7 billion and 81.
58 trillion, EPS is expected to be 0 in 2019-2021.
32 yuan, 0.
46 yuan, 0.
54 yuan, corresponding PE is 16 respectively.
1 and 9.
Maintain the “Recommended” level.
Risk reminders: 1) policy risks, uncertainty in policy adjustments will bring policy risks to its development prospects; 2) risks such as oil prices, exchange rates, rising oil prices, and currency value decreases will all lead to profitable earnings; 3)Security risks. A security incident may deprive consumers of their confidence, which will lead to a significant decline in tandem revenue.