China Eastern Airlines (600115) quarterly report comment: freight rate slightly reduces costs, saves costs, improves third-quarter results
China Eastern Airlines disclosed the third quarterly report, and realized operating income of 346 in the third quarter.
200 million, an annual increase of 3.
5%, net profit attributable to mother 24.
2 billion, an increase of 9 in ten years.
8%; the first three quarters achieved operating revenue of 93.4 billion, and an annual increase of 6.
3%, achieving net profit attributable to mother 43.
700 million, down 2 every year.
The load factor decreased slightly, freight rates decreased, and the revenue grew rapidly. The company realized ASK702 in the third quarter.
4 billion, an increase of 12 in ten years.
1% to achieve RPK578.
8 billion, a 10-year growth of 10.
4%, load factor 82.
4%, down by 1 every year.
28pct, of which domestic passenger load factor decreased by 1.
At 68 points, the international line load factor was basically the same, and the regional line load factor penetrated due to the drop in the number of Hong Kong passengers and dropped by 9.
Due to the rapid growth of transportation investment, combined with the macroeconomic bottom and the high base of last year, the company’s freight rate continued the downward trend in the second quarter, a decline of about 5%, and the slenderness affected the growth rate of revenue significantly lower than the increase in trafficspeed.
The efficiency of aircraft utilization has increased, the Civil Aviation Development Fund has reduced its burden, and the cost has continued to save. In the third quarter, international oil prices hovered at a low level, and the ex-factory price of aviation kerosene gradually decreased.
At 7%, the company’s unit fuel cost has declined; in terms of non-oil costs, ASK increased at a faster rate (12.
1%) is significantly higher than the growth rate of aircraft numbers at the end of the third quarter (6.
6%), the merger of the Civil Aviation Development Fund to reduce the burden, we calculated that the company’s unit non-oil cost has dropped significantly, in the third quarter, the decline may exceed 5%, and the cost continues to save.
Overall sales management expenses improved, subsidy income increased, and performance improved slightly.
The company’s sales expense ratio in the third quarter was 4.
31%, a decline of 0 per year.
43 points; management (including R & D) expense ratio 2.
65%, a year increase of 0.
21pct; In terms of financial expenses, the company faced a certain exchange loss due to the estimated exchange rate in the third quarter, but considering that the exchange loss in the same period last year was 16.
100 million, we predict that the exchange rate of profit and loss scissors will be small, and the deduction of financial expenses due to the increase in the operating lease 苏州桑拿网 consolidation statement index increased slightly.
In addition, the company’s other income in the third quarter13.
700 million, an increase of 3 per year.
200 million, other report items did not change much, and net profit attributable to mothers increased slightly.
The replenishment in winter and spring is tightening, and freight rates are expected to improve significantly in winter 2019.
Landing at a 7% growth rate, combined with the B737MAX grounding continuity and R5 limiting pilot flight hours, combined compression from multiple dimensions to provide free space.
Taking into account the expected recovery in demand bottoming out and the low base of freight rates since the fourth quarter of last year, we believe that freight rates are expected to improve significantly in the fourth quarter and 2020.
Investment suggestion The company’s strategic objectives are clear. The Beijing and Shanghai hubs form a route network layout of “Double Dragons Going to the Sea”, and the core gold trunk Beijing-Shanghai line has worked hard to retain operating yields at the old airport of the capital, and it will cooperate with Juneyao Airlines to hold cross-shareholding operations to further optimize Shanghai.Market competition pattern and broad development space.
At present, the company’s estimated PB level is in the historical bottom area. We believe that the upside is significantly greater than the downside risk. It is estimated that the net profit attributable to mothers will be 43 in 2019-2021.
4 billion, 78.6 billion, 90.
4 billion, maintain “Buy” rating and target price 7.
Risk warning: macroeconomic fluctuations, increased oil prices, exchange rate depreciation, security accidents