Global Mobility/Transport, Equity Long-Short

Mohshin Aziz

Thematic (Sector/Industry)

<ul>
<li>Chinese airports have turnaround with Xiamen, Guangzhou, and Shanghai airports reported 9M23 profits. The others (Beijing, Shenzhen, Hainan) are still lossmaking, but should turnaround soon   </li>
<li>The upcoming Winter/Spring schedule reveals international capacity at 70% of 2019's level, a catalyst for strong earnings growth, as international flights generate &gt;2.5x higher revenues   </li>
<li>
<a href="https://www.smartkarma.com/entities/xiamen-international-air-a" target="_blank" data-smartkarma-citation="entities:18544:1" rel="noopener">Xiamen International Air A (600897 CH)</a> exhibits the best value; <a href="https://www.smartkarma.com/entities/shanghai-international-airport-co-ltd" target="_blank" data-smartkarma-citation="entities:6511:1" rel="noopener">Shanghai International Airport (600009 CH)</a> is the most appealing due to its size and liquidity </li>
</ul>


Chinese airports have turnaround with Xiamen, Guangzhou, and Shanghai airports reported 9M23 profits. The others (Beijing, Shenzhen, Hainan) are still lossmaking, but should turnaround soon   
The upcoming Winter/Spring schedule reveals international capacity at 70% of 2019's level, a catalyst for strong earnings growth, as international flights generate &gt;2.5x higher revenues   

Xiamen International Air A (600897 CH) exhibits the best value; Shanghai International Airport (600009 CH) is the most appealing due to its size and liquidity 


Chinese Airports at Inflection Point, Low Risk and High Visibility Growth Sector

Equity Bottom-Up

Shanghai International Airport / Equity Bottom-Up

<ul>
<li>Chinese airports are enjoying a steady passenger traffic growth of 5% YTD; Shenzhen and Shanghai airports are growing much faster.  </li>
<li>Shanghai International Airport (600009 CH)is our top pick given its size, liquidity, strong balance sheet, and its strong earnings growth potential.  </li>
<li>Our target price for <a href="https://www.smartkarma.com/entities/shanghai-international-airport-co-ltd" target="_blank" data-smartkarma-citation="entities:6511:1" rel="noopener">Shanghai International Airport (600009 CH)</a> is CNY44, pegged to global airport peer average FY25 EV/EBITDA of 12x.   </li>
</ul>


Chinese airports are enjoying a steady passenger traffic growth of 5% YTD; Shenzhen and Shanghai airports are growing much faster.  
Shanghai International Airport (600009 CH)is our top pick given its size, liquidity, strong balance sheet, and its strong earnings growth potential.  
Our target price for Shanghai International Airport (600009 CH) is CNY44, pegged to global airport peer average FY25 EV/EBITDA of 12x.   


Shanghai International Airport (600009 CH | BUY | TP:CNY44): Slow but Steady Earnings Recovery

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

<ul><li>China is expected to be the largest national market for commercial airplane deliveries through 2043, Boeing Co. said, as the U.S. company resumed deliveries of its cash-cow 737 Max jets to Chinese airlines after a two-month pause.</li><li>Boeing predicts 43,975 new commercial airplanes will be delivered globally over the next 20 years, according to its 2024 Commercial Market Outlook released Friday. That’s up from last year’s forecast of 42,595 aircraft.</li><li>The manufacturer raised its forecast because it believes that air travel will have fully recovered from its pandemic-era slump by then, with demand even surpassing pre-pandemic levels, according to a press release about the Outlook.</li></ul>

China is expected to be the largest national market for commercial airplane deliveries through 2043, Boeing Co. said, as the U.S. company resumed deliveries of its cash-cow 737 Max jets to Chinese airlines after a two-month pause.Boeing predicts 43,975 new commercial airplanes will be delivered globally over the next 20 years, according to its 2024 Commercial Market Outlook released Friday. That’s up from last year’s forecast of 42,595 aircraft.The manufacturer raised its forecast because it believes that air travel will have fully recovered from its pandemic-era slump by then, with demand even surpassing pre-pandemic levels, according to a press release about the Outlook.

China to Be Top National Market for Aircraft in the Coming Two Decades, Boeing Predicts

<ul><li>China’s top state assets administration imposed minimum prices for tickets on seven state-owned airlines, slamming the door on ultra-low-cost promotions launched as travel plunged during the pandemic</li><li>The commission put a floor under prices to preserve and increase the value of state-owned assets and to pare operating losses, a senior industry insider said.</li><li>The move is a way for SASAC to exercise its rights as a majority shareholder of the state-owned airlines.</li></ul>

China’s top state assets administration imposed minimum prices for tickets on seven state-owned airlines, slamming the door on ultra-low-cost promotions launched as travel plunged during the pandemicThe commission put a floor under prices to preserve and increase the value of state-owned assets and to pare operating losses, a senior industry insider said.The move is a way for SASAC to exercise its rights as a majority shareholder of the state-owned airlines.

China Slams the Door on ‘1 Yuan Airfares’ Spawned by the Pandemic

China

Xiamen International Airport Co., Ltd. operates and maintains Gaoqi Airport. The  Company provides terminal transportation service, maintains airport waiting halls, operates airport shopping malls, as well as offers advertising and airport mechanical engineering services.

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Xiamen International Air A (600897 CH)

Chinese Airports at Inflection Point, Low Risk and High Visibility Growth Sector

Chinese airports have underperformed the CSI 300 despite a successful turnaround. There will be a surge in lucrative international flights that...

Mohshin Aziz

Shanghai International Airport (600009 CH | BUY | TP:CNY44): Slow but Steady Earnings Recovery

Chinese airports are enjoying steady passenger traffic growth and a good proxy for travel recovery. Our top pick among the six listed Chinese...

Mohshin Aziz

China to Be Top National Market for Aircraft in the Coming Two Decades, Boeing Predicts

China is expected to be the largest national market for commercial airplane deliveries through 2043, Boeing Co. said, as the U.S. company resumed...

Caixin Global

China Slams the Door on ‘1 Yuan Airfares’ Spawned by the Pandemic

China’s top state assets administration imposed minimum prices for tickets on seven state-owned airlines, slamming the door on ultra-low-cost...

Caixin Global

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52-week Range

Market Cap (USDm)

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Chinese Airports at Inflection Point, Low Risk and High Visibility Growth Sector

​Chinese airports have underperformed the CSI 300 despite a successful turnaround. There will be a surge in lucrative international flights that...

Mohshin Aziz

Shanghai International Airport (600009 CH | BUY | TP:CNY44): Slow but Steady Earnings Recovery

​Chinese airports are enjoying steady passenger traffic growth and a good proxy for travel recovery. Our top pick among the six listed Chinese...

Mohshin Aziz

China to Be Top National Market for Aircraft in the Coming Two Decades, Boeing Predicts

China is expected to be the largest national market for commercial airplane deliveries through 2043, Boeing Co. said, as the U.S. company resumed...

Caixin Global

China Slams the Door on ‘1 Yuan Airfares’ Spawned by the Pandemic

China’s top state assets administration imposed minimum prices for tickets on seven state-owned airlines, slamming the door on ultra-low-cost...

Caixin Global

Chinese airports have underperformed the CSI 300 despite a successful turnaround. There will be a surge in lucrative international flights that...

Chinese airports are enjoying steady passenger traffic growth and a good proxy for travel recovery. Our top pick among the six listed Chinese...