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, BUY, TP:9.90HKD): Decent Results, Stay the Course

Cathay Pacific (293 HK): Multiple Positive Developments

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

Cathay Pacific (293 HK): Taking off with Momentum

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

China Pair Trade Idea: Long Air China (753 HK), Short CSA (1055 HK)

Equity Bottom-Up

Cathay Pacific Airways / Equity Bottom-Up

<ul>
<li>Operations are on track with earlier guidance given during FY23 results, loads and yields are healthy, with UK and North American performing better than expected  </li>
<li>Will buyback and cancel remaining 97.7m preference shares for a sum of HKD10b by end of July 2024. Shareholder dilution has been avoided  </li>
<li>Cathay Pacific is a value BUY, our target price of HK$9.90 (+24% UPSIDE) implies 10x FY2024 PE, parity multiple against its arch-rival <a href="https://www.smartkarma.com/entities/singapore-airlines-ltd" target="_blank" data-smartkarma-citation="entities:74:1" rel="noopener">Singapore Airlines (SIA SP)</a> </li>
</ul>


Operations are on track with earlier guidance given during FY23 results, loads and yields are healthy, with UK and North American performing better than expected  
Will buyback and cancel remaining 97.7m preference shares for a sum of HKD10b by end of July 2024. Shareholder dilution has been avoided  
Cathay Pacific is a value BUY, our target price of HK$9.90 (+24% UPSIDE) implies 10x FY2024 PE, parity multiple against its arch-rival Singapore Airlines (SIA SP) 


Cathay Pacific Airways

Cathay Pacific (293 HK, BUY, TP:HKD):