BBSP Equity Asia Weekly Research 13 June 2018

Japanese Airlines: OP Margins Dropped Amidst Increasing Fuel Costs

ANA New Flight Schedule Adds International Freight Capacity.

ANA Maintains Momentum Capitalising on International Revenue While Consolidating Domestic Operations

JAL's Tactical Route Plans Boost Revenue Yet Intense Rivalry Compress Margins

Equity Analyst, LightStream Research

Nuzran Sahib

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<p>ANA Holdings recorded JPY1,972bn in FY03/18 revenue (+11.7% YoY) to beat both company guidance of JPY1,925bn and the consensus of 1,962bn for the period. This is mainly attributable to robust demand and strong performance in international passenger services and international cargo services. Revenues in air transportation recorded JPY1,731.1bn (+12.7% YoY) while other segments grew in single digits where airline related revenue was the only significant revenue stream out of the lot, accounting…</p>

ANA Holdings recorded JPY1,972bn in FY03/18 revenue (+11.7% YoY) to beat both company guidance of JPY1,925bn and the consensus of 1,962bn for the period. This is mainly attributable to robust demand and strong performance in international passenger services and international cargo services. Revenues in air transportation recorded JPY1,731.1bn (+12.7% YoY) while other segments grew in single digits where airline related revenue was the only significant revenue stream out of the lot, accounting…

Japanese Full-Service Carriers Benefit from Growing International Passengers

Ana Holdings

Japanese Full-Service Carriers Benefit from Growing International Passengers