该行认为，第四季行业价格竞争激烈，市场对其全年预测存在下行风险。该行另指，第三季经营现金流同比跌35%至111亿元，自由现金流貌似紧张，或因为租赁支付所致。Daiwa believes that the industry faces intense price competition in the fourth quarter, with downside risks to the full-year forecast for China Southern Airlines.
According to the Securities Times app, Daiwa released a research report stating that considering the off-season risks still exist, the target price for China Southern Airlines (01055) is 2.8 Hong Kong dollars, with a rating of "in line with the market".
The report mentioned that in the third quarter, China Southern Airlines' net profit dropped by 24% to 3.2 billion yuan (the same below), surpassing expectations. Excluding 0.35 billion yuan in foreign exchange gains, the pre-tax profit in the third quarter for China Southern Airlines was 4.4 billion yuan, down 21% year-on-year, reaching 74% of the level in 2019.
The bank believes that the industry faces intense price competition in the fourth quarter, with downside risks to its full-year forecast. The bank also pointed out that the operating cash flow in the third quarter dropped by 35% year-on-year to 11.1 billion yuan, and free cash flow seems tight, possibly due to lease payments.
