POEMS Research : Daily Reports

POEMS Research : Daily Reports:



 "HONGKONG

China Eastern Airlines  – Continue a mild recovery trend
Rating:



Accumulate
Closing price: 2.65



Target price: 2.81



 Total income reported to RMB 44.936 billion yuan in 1H, up 6.28% yoy. Net profit belonging to the parent company is RMB 12 million, shrinking by 98% yoy from 622 million in the same period of last year.
Earnings per share are 0.001 yuan while they were 0.536 in 2013H. The yield of passenger improved 1.2% yoy to 0.61 yuan. The international routes improved significantly, upping 6.34% yoy; regional routes with high profit fell by 10.6%; domestic routes reduced 0.2% yearly.
In August passenger traffic only slightly upped 2.65% yoy, mainly due to the relatively high influence on CEA on domestic airlines flow controls. While the F L/F grew 2.6 ppts to 60%.
We revised the Company’s estimated EPS to 0.14,0.22,0.3 in 2014/2015/2016 respectively. Our 12-m-target price is HK$2.81, equivalent to 15.3/10/7.4xP/E in 2014/2015/2016 respectively. We recommend causly accumulate rating."



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