On Thursday, September 8, Futu News, aviation stocks opened higher. As of press time, Air China Limited rose more than 3%, China Southern Airlines, China China Eastern Airlines Corp Ltd and Cathay Pacific Airways rose nearly 2%, Meilan Airlines and Beijing Capital Airport rose nearly 1%. Bank of China Airlines leases rose.

JPMorgan Chase & Co: the mainland aviation industry is attractive, the first choice is Capital Airport and Air China Limited

JPMorgan Chase & Co recently released a report saying that although there has been an obvious retrogression in flight activity in the mainland since late August, the risk and return of the aviation industry is still considered attractive because it is poorly positioned by investors. and air travel has room for recovery in the first half of next year, the first choice$BEIJING AIRPORT (00694.HK)$及$AIR CHINA (00753.HK)$。

The bank believes that there is an opportunity to increase its holdings in mainland aviation stocks on the basis of falling share prices. Due to the gradual resumption of cross-border opening of mainland airports since late June, the bank prefers shares in mainland airports to those of mainland airlines.

Moto said that it will$AIR CHINA (00753.HK)$The target price will be reduced from 7.5 yuan to 7.4 yuan, maintaining the "overweight" rating.$CHINA EAST AIR (00670.HK)$The target price is reduced from 3.4 yuan to 3.2 yuan, maintaining the "overweight" rating.$CHINA SOUTH AIR (01055.HK)$The target price is 5 yuan, and the rating is "over-holding". The bank maintains a target price of 7.3 yuan for Beijing Capital Airport shares, with a rating of "overweight". In view of the fact that the international coverage of Beijing Capital International Airport and Air China is higher than that of their peers, the bank lists it as the industry's first choice.

China Galaxy Securities: "recommended Buy" rating to Air China Limited

In addition, China Galaxy Securities recently conducted a study on Air China Limited and issued a research report, which gave Air China Limited a "recommended buy" rating. The report pointed out that in the second half of this year, the global COVID-19 epidemic situation was gradually improving. With China's dynamic zero clearance and epidemic prevention policy loosened, international flights gradually increased, the aviation sector may usher in the opportunity of cycle reversal. The EPS of the forecast company from 2022 to 2024 is-1.23RMB / 0.25RMB / 0.90RMB respectively, corresponding to the PE from 2022 to 2024is-8.56X/41.77X/12.01X, giving the "recommended buy" rating.

CITIC: maintaining the "buy" rating of Beijing Capital Airport shares, it is expected that the fundamental inflection point may be approaching.

CITIC reported that due to repeated local epidemics and flight security, the net profit loss of Beijing Capital Airport shares increased by 67% in the first half of 2022 compared with the same period last year. During the same period, the company confirmed the relevant revenue in stages according to the tax exemption supplementary agreement, resulting in an increase of 82.8% in retail revenue from the same period last year to 39 million yuan, and the tax-free income in 2021 is still under negotiation. The overall cost of the company is rigid, and the operating expenses in the first half of the year decreased by only 1.1% compared with the same period last year, of which aviation security premiums increased by 20.5% compared with the same period last year. The bank believes that the company's performance is under short-term pressure, but with the optimization and adjustment of local epidemic prevention policies and the continued loosening of the international line, the fundamental inflection point may be approaching. The transfer of Daxing brings the opportunity to optimize the company's passenger structure. It is estimated that the company's outbound passenger throughput CAGR will exceed 10% in 2023-25, and the proportion of long-term international passengers may reach 35%, which is expected to promote the development of the company's non-aviation business. After the company's performance is bottomed out, it is expected to start a long period of time. According to the company's interim results, the bank downgraded the company's earnings per share forecast for 2022-23-24 to-0.49 yuan per share (the original forecast was-0.19 yuan, 0.33 yuan, 0.53 yuan), and gave the company a valuation of 1.4 times price-to-book ratio in 2023, corresponding to an one-year target price of HK $6.45, taking into account the valuation center of the two years before the epidemic, and maintained a "buy" rating.