Global Mobility/Transport, Equity Long-Short

Mohshin Aziz

Capital market veteran with 22 years experience with stints as an analyst (sell-side & buyside), investor relations and fund manager. 

My key expertise in the aviation sector. My definition of "aviation" includes airlines, travel tours, airports, airport retail & services, OEMs, online travel agents, aircraft lessors, air cargo/logistics, etc.   

I have an active watchlist consisting 190 companies across 41 countries. The aviation sector is highly cyclical and I am constantly evaluating signals to uncover attractive trade opportunities.

Cathay Pacific (293 HK): Multiple Positive Developments

Cathay Pacific (293 HK, BUY, TP HK$9.90): FY23 Better than Expected, and Surprise Dividends

Air China (753 HK): Steering Back to the Right Lane

Equity Bottom-Up

Cathay Pacific Airways / Equity Bottom-Up

<ul>
<li>1HFY24 net profit declined -15% YoY to HK$3.4 billion, in-line with consensus </li>
<li>Interim dividend of HK$0.20/share, at 38% payout ratio. Typically, Cathay pays 50% payout ratio, and we can expect final dividend to be much larger</li>
<li>Maintain BUY with target price of HK$9.90 (+26% UPSIDE) implies 10x FY2024 PE, parity multiple against its arch-rival Singapore Airlines (SIA SP). </li>
</ul>


1HFY24 net profit declined -15% YoY to HK$3.4 billion, in-line with consensus 
Interim dividend of HK$0.20/share, at 38% payout ratio. Typically, Cathay pays 50% payout ratio, and we can expect final dividend to be much larger
Maintain BUY with target price of HK$9.90 (+26% UPSIDE) implies 10x FY2024 PE, parity multiple against its arch-rival Singapore Airlines (SIA SP). 


Cathay Pacific (293 HK, BUY, TP:9.90HKD): Decent Results, Stay the Course