Events:
Hainan Airport released a three-quarterly report that in the first three quarters of 2023, the company achieved revenue of 4.537 billion yuan / + 53.60%, net profit of 790 million yuan /-53.64%, deducting non-return net profit of 633 million yuan / year-on-year return to profit. 2023 Q3 achieved revenue of 1.166 billion yuan / + 69.4%, net profit of 207 million yuan /-87.4%, and non-return net profit of 155 million yuan / year-on-year return to profit.
Comments:
The airport and hotel business benefited from the trend of tourism boom in Hainan, which led to a significant improvement in revenue and profit compared with the same period last year. In the third quarter, the airport and hotel business improved due to the market situation, while the real estate business increased sales, resulting in a significant increase in revenue. The multi-dimensional operation index of the company's core main airport management business has been significantly improved. Among them, 335000 takeoffs and landings of Sanya Phoenix International Airport 2023Q3 / + 134% / + 18% compared with the same period in 2019, of which domestic routes are dominant; passenger throughput is 5.2824 million / year-on-year + 174% / compared with the same period in 2019 + 19% During the reporting period, the completion and operation of the reconstruction and expansion project of the international terminal of Sanya Phoenix International Airport led to an increase in passenger flow on international and regional routes.
The profitability has improved steadily and the level of cost control is good. Gross profit margin: the company's 2023Q3 comprehensive gross profit margin is 46% / year-on-year + 45pct/ + 5.3pct; expense side: the company's 2023Q3 expense rate is 29.9% 45pct/ 15 PCT, where the sales expense rate is 4.26%; the management expense rate is 16.10%; the management expense rate is 5.57pct; and the financial expense rate is 9.50%/-10.57pct. Net interest rate: the company's 2023Q3 return net interest rate is 18%, deducting the non-return net interest rate is 13%.
In the winter and spring season, the weekly flight volume of Phoenix Airport plans to increase by 3.6% compared with the same period last year, combined with the tax-free business growth brought about by the second phase of the duty-free shop at Phoenix Airport. In the winter and spring of 2023, Fenghuang Airport plans to operate 110routes and 82 navigable airports (6 new domestic airports and 8 international and regional airports) and 3086 flights per week. The second phase of the duty-free shop at Phoenix Airport opened on September 7, with an expansion of 5000 square meters. With the arrival of the traditional peak season in Hainan, the company's airport and duty-free related business are expected to usher in marginal improvement under the catalysis of passenger flow.
Investment suggestion: Hainan Airport holds the core airport and commercial resources of the island, deeply participates in duty-free business, and benefits from the prosperity of duty-free racetrack and the construction and development of free trade port, the performance is expected to continue to improve. It is estimated that the company's net profit from 2023 to 2025 will be 9.83 yuan 13.86 / 1.629 billion yuan, corresponding to 44 times / 31 times / 27 times of PE, maintaining the "buy" rating.
Risk hints: policy risks, macroeconomic fluctuations.