Credit Suisse estimates that Cathay Pacific Airways (00293) pure profit will benefit from Air China Limited (00753)'s profit recovery.
According to Zhitong Finance APP, Credit Suisse has released a research report stating that it maintains the "buy" rating for Cathay Pacific Airways (00293), and the first half-year performance is not as weak as the market reaction, with a target price of HKD 9.8.
The bank believes that the group's passenger yield will continue to decline due to competition on short-haul routes and normalization of long-haul routes, but the cargo yield may be stronger due to seasonal factors, and this trend may continue into the second half of the year.
Credit Suisse estimates that the group's profit in the second half of the year will be stronger than the first half, and its operating profit for the fiscal year has peaked, but net profit will benefit from Air China Limited (00753)'s profit recovery.