Grain 10月29日 | Morgan Stanley's research report stated that China Southern Airlines' third-quarter net profit fell 24% year-on-year to 3.2 billion yuan, beating expectations; excluding 0.35 billion yuan in forex gains, pre-tax profit was 4.4 billion yuan, down 21% year-on-year, reaching 74% of the 2019 level. The bank believes that the fourth quarter will see intense industry price competition, with downside risks to its full-year forecast in the market. It also noted that third-quarter operating cash flow fell 35% year-on-year to 11.1 billion yuan, suggesting tight free cash flow, possibly due to lease payments. Considering that there are still risks in the off-season, the bank has a target price for the company's H shares of 2.8 Hong Kong dollars, with a rating of "synchronized with the market".