Investment Rating - The investment rating for the company is "Buy" with a target price of 15.40 HKD [6][7]. Core Views - The company, China Civil Aviation Information Network (CCAIN), is expected to see a significant increase in net profit for 2024, projected at 2.074 billion RMB, a year-on-year increase of 48.3%. Revenue is anticipated to reach 8.823 billion RMB, up 26.3% year-on-year. The net profit for the second half of 2024 is expected to be 710 million RMB, a substantial increase of 256.1% year-on-year, primarily due to the recognition of revenue from system integration and technical services [1][2][3]. - The company's main business, Aviation Information Technology (AIT), is showing steady growth, with a 13.1% increase in airline business processing volume in the second half of 2024. Despite a 7.4% decrease in unit price, AIT revenue grew by 4.7% to 2.05 billion RMB. The system integration business saw a remarkable 79.4% increase in revenue, reaching 1.21 billion RMB in the second half of 2024 [2][3]. - The company has improved its profit forecast slightly, raising the net profit estimates for 2025 and 2026 by 1% and 2% respectively, and expects net profit for 2027 to be 2.785 billion RMB. The target price has been adjusted to 15.40 HKD based on a 19x PE ratio for 2025 [4][6]. Summary by Sections Financial Performance - For 2024, the company is projected to achieve a net profit of 2.074 billion RMB, a 48.3% increase from the previous year, with total revenue expected to be 8.823 billion RMB, reflecting a 26.3% growth. The second half of 2024 is expected to show a net profit of 710 million RMB, a significant increase of 256.1% year-on-year [1][3]. - The total operating costs for 2024 are projected at 4.31 billion RMB, a 30.0% increase year-on-year, while gross profit is expected to rise by 23.1% to 4.51 billion RMB [3][5]. Revenue Breakdown - AIT revenue for the full year is expected to reach 4.32 billion RMB, a 12.2% increase, while the system integration business is projected to grow by 89.9% to 1.89 billion RMB. Technical support services are anticipated to see a 109.9% increase in revenue in the second half of 2024 [2][4]. Dividend Policy - The company has increased its dividend payout ratio to 35%-45%, up from the previous 30%-40%, indicating a stronger focus on shareholder returns [3].

Core Viewpoint - CICC has raised the net profit estimates for China Civil Aviation Information Network (00696) for 2025 and 2026 by 10.7% and 8.9% to CNY 2.327 billion and CNY 2.581 billion respectively, primarily due to increased project-based service revenue [1] Financial Performance - The company reported a revenue of CNY 8.823 billion for 2024, representing a year-on-year growth of 26%, and a net profit attributable to shareholders of CNY 2.074 billion, up 48%, aligning with market expectations [1] - In the second half of 2024, revenue reached CNY 4.781 billion, a 30% year-on-year increase and an 18% quarter-on-quarter increase; net profit was CNY 707 million, showing a 256% year-on-year growth but a 48% quarter-on-quarter decline [1] - The board proposed a dividend of CNY 0.239 per share (before tax), which accounts for 34% of the 2024 net profit attributable to shareholders, and adjusted the dividend policy to distribute cash dividends annually, targeting 35%-45% of net profit [1] Business Segments Performance - The AIT business generated CNY 2.054 billion in revenue in the second half of 2024, a 5% year-on-year increase, with total bookings up 13% but average price per booking down 7% to CNY 5.4 [2] - Other business segments showed strong growth: system integration revenue increased by 79% due to more projects reaching completion, and technical support and product revenue surged by 110% driven by rising IT service demands [2] - Settlement and clearing services, along with data network services, grew by 20% and 32% respectively, outpacing booking growth [2] Cost Structure - Operating costs in the second half of 2024 rose by 25.5%, driven by a 15% increase in labor costs (21% for the full year), a 31% rise in depreciation and amortization due to R&D expenses being capitalized, and a significant 180% increase in sales costs for integration services [3] - The company recorded a credit impairment loss of CNY 180 million, a decrease of CNY 242 million year-on-year [3] Development Trends - Business volume is steadily recovering, with a focus on the progress of international routes. For January to February 2025, the company reported a year-on-year increase of 3% for domestic routes, 29% for domestic international routes, and a 21% decline for international routes, recovering to 119%, 94%, and 45% of 2019 levels respectively [4] - The company anticipates that the recovery of international routes may improve in 2025 as previous constraints related to flight routes and supply-demand relationships with overseas airlines ease [4]

Core Viewpoint - China Civil Aviation Information Network (00696) reported a total revenue of 8.823 billion RMB for the fiscal year 2024, reflecting a year-on-year growth of 26.3% and a net profit attributable to shareholders of 2.074 billion RMB, which is a 48.3% increase year-on-year [1] Group 1: Financial Performance - Total revenue for 2024 reached 8.823 billion RMB, with a year-on-year increase of 26.3% [1] - Net profit attributable to shareholders was 2.074 billion RMB, marking a year-on-year growth of 48.3% [1] - Basic earnings per share stood at 0.71 RMB, with a proposed final dividend of 0.239 RMB per share (tax included) [1] Group 2: Industry Context - The global economy is experiencing a slow recovery, with China's economic operation remaining stable and showing signs of improvement [1] - Domestic passenger traffic has surpassed pre-pandemic levels from 2019, achieving a historical high, while international flights have recovered to over 80% of 2019 levels [1] Group 3: Revenue Breakdown - Revenue from aviation information technology services accounted for 48.9% of total revenue in 2024, down from 55.1% in 2023, totaling 4.319 billion RMB, a year-on-year increase of 12.2% [2] - The increase in aviation information technology services revenue was driven by an 18.1% rise in total system processing volume, despite international and foreign airline processing volumes not yet recovering to 2019 levels [2] - System integration services revenue constituted 21.4% of total revenue in 2024, up from 14.2% in 2023, amounting to 1.8877 billion RMB, with a significant year-on-year increase of 89.9% [2] - The growth in system integration services revenue was attributed to the orderly progress of engineering construction and an increase in the scale and number of projects meeting completion acceptance conditions [2]

Financial Performance - Total revenue for the fiscal year ending December 31, 2024, was approximately RMB 8,823.0 million, an increase of about 26.3% compared to the previous year[6] - Net profit attributable to shareholders of the parent company was approximately RMB 2,074.3 million, representing an increase of about 48.3% year-over-year[6] - Earnings per share (EPS) for the year was RMB 0.71, up from RMB 0.48 in the previous year[9] - The company reported a total comprehensive income of RMB 2,280.8 million, compared to RMB 1,445.8 million in the previous year[9] - Operating profit for the year was RMB 2,402.5 million, compared to RMB 1,604.6 million in the previous year[7] - The company reported a net profit of RMB 2,074,273 thousand, compared to RMB 1,398,952 thousand in the previous year, resulting in earnings per share of RMB 0.71, up from RMB 0.48[33] - In 2024, the company's pre-tax profit was approximately RMB 2,394.5 million, an increase of about 48.5% compared to 2023[54] - The net profit attributable to shareholders was approximately RMB 2,074.3 million, reflecting an increase of about 48.3% year-on-year[54] - Total revenue for 2024 was approximately RMB 8,823.0 million, representing an increase of about RMB 1,839.2 million or 26.3% from 2023[56] Dividends and Shareholder Returns - The board proposed a final cash dividend of RMB 0.239 per share for the fiscal year 2024, which is included in the adjusted dividend policy of distributing 35%-45% of the net profit[6] - The proposed cash dividend for the fiscal year 2024 is RMB 699,364 thousand, equating to RMB 0.239 per share, pending shareholder approval[34] - The company plans to distribute a final dividend of RMB 699.4 million for the fiscal year 2024, which is approximately 35%–45% of the net profit attributable to the parent company[65] Operating Costs and Expenses - Total operating costs for the year were RMB 6,453.5 million, an increase from RMB 5,300.8 million in the previous year[7] - Total operating costs for the current period amounted to RMB 6,358,861 thousand, up from RMB 5,218,966 thousand in the previous period, reflecting a year-on-year increase of approximately 21.9%[36] - The company's total operating costs for 2024 were RMB 6,453.5 million, an increase of RMB 1,152.6 million or 21.7% from 2023[57] - Research and development expenses for the year were RMB 824.6 million, slightly down from RMB 863.0 million in the previous year[7] Assets and Liabilities - Cash and cash equivalents at the end of the fiscal year were RMB 10,548.9 million, up from RMB 7,367.6 million in the previous year[10] - The company’s total assets at the end of the fiscal year were RMB 20,498.2 million, an increase from RMB 18,126.2 million in the previous year[10] - Total assets increased to RMB 29,694,646 million, up from RMB 27,500,129 million, representing a growth of approximately 8% year-over-year[11] - Total liabilities increased to RMB 6,797,660 million, compared to RMB 6,481,535 million, indicating a growth of around 5%[12] - Owner's equity reached RMB 22,896,986 million, up from RMB 21,018,594 million, which is an increase of about 8.9%[13] - The asset-liability ratio of the group as of December 31, 2024, is 22.9%, down from 23.6% as of December 31, 2023[82] Investments and Capital Expenditures - The company has committed RMB 1 billion to the establishment of a private equity fund focused on 5G applications and related industries, with actual contributions of RMB 852,175 thousand as of December 31, 2024[28] - The company has invested RMB 852.2 million in the China Mobile Equity Fund as of December 31, 2024, focusing on the 5G industry applications[79] - The total capital expenditure for the group in fiscal year 2024 was RMB 545.6 million, a decrease from RMB 1,227.8 million in fiscal year 2023[85] - The company has committed approximately RMB 1,207.7 million for capital expenditures, primarily for daily operations and system upgrades[85] Operational Highlights - The system processing volume for domestic and international commercial airlines reached approximately 732.4 million passengers in 2024, representing an 18.1% increase compared to the previous year[39] - The group’s settlement and clearing system processed approximately 1,263.9 million transactions in 2024, a year-on-year growth of 24.2%[42] - The revenue from agency settlement for passenger, cargo, and mail transport exceeded RMB 66.38 billion, marking a 39.7% increase compared to the previous year[42] - The group signed contracts with 19 airlines for its digital retail platform, enhancing customer-centric business models[40] - The group has established direct connections with 134 foreign and regional airlines, covering over 400 cities and reaching 32 countries and regions by 2024[43] Future Outlook and Strategic Initiatives - The company is focusing on enhancing safety production stability and improving information security and data management levels in 2025[98] - The company plans to increase investment in technology innovation and accelerate the transformation of technological achievements in 2025[98] - The company aims to expand its market coverage of smart civil aviation products and promote high-quality international operations in 2025[98] - The company acknowledges the challenges posed by external uncertainties and intensified competition in the domestic civil aviation information market[97] - The company will continue to deepen reform initiatives and enhance its strategic planning for the 15th Five-Year Plan[98] - The company is committed to maintaining its leading position in the industry while exploring new growth opportunities in the digital economy and emerging industries[97]

证券时报网讯，美银下调中国民航信息网络目标价至10.3港元，维持"中性"评级，并下调2024—2026年 盈利预测6%。 主要原因是外国航空公司回归缓慢，对航空信息科技服务平均售价造成压力；疫情后成本结构上升。 校对：刘星莹 ...

Investment Rating - The report initiates coverage with a "Buy" rating and sets a target price of HKD 11.92 based on DCF valuation [4] Core Views - The company is a leading provider of aviation information technology services in China, with a significant recovery in business and performance post-pandemic [1][2] - The Global Distribution System (GDS) operated by the company is among the top three globally, with a strong market position supported by regulatory barriers against foreign competitors [2][51] - Revenue and profit are expected to continue growing, driven by increasing passenger volumes and improvements in pricing for international services [2][4] Summary by Sections Company Overview - Established in 2000, the company provides computer information services for airlines, airports, and agents, with its core systems recognized as key by the State Council [1] - Business volume and revenue declined from 2020 to 2023 due to public health events, but have shown recovery with a 19% increase in system processing volume in the first 11 months of 2024 compared to the previous year [1] Investment Logic - The company's GDS system is the primary service for domestic airlines, with a processing volume that correlates closely with passenger traffic [2] - Short-term policies and long-term economic growth are expected to drive passenger volume growth, supporting revenue increases [2] Other Main Businesses - System integration services saw a significant revenue increase of 112% in 2024H1, with the company holding a dominant position in the domestic airport market [3] - Clearing and settlement services also experienced a 50% revenue growth in 2024H1, linked to rising passenger volumes [3] Financial Forecasts and Valuation - Projected net profits for 2024-2026 are estimated at RMB 17 billion, RMB 21 billion, and RMB 25 billion respectively, indicating strong growth potential [4] - The company has maintained a stable dividend payout ratio of 40% from 2019 to 2023, reflecting a commitment to returning value to shareholders [1][4]

Financial Performance - Total revenue for the first half of 2024 reached RMB 4,041.8 million, an increase of RMB 734.2 million or 22.2% compared to RMB 3,307.6 million in the first half of 2023[12]. - Net profit attributable to shareholders was RMB 1,367.2 million, up approximately 13.9% from RMB 1,200.4 million in the same period last year[11]. - Revenue from aviation information technology services accounted for 56.0% of total revenue, increasing from RMB 1,890.1 million to RMB 2,265.0 million, a growth of 19.8%[12]. - Settlement and clearing revenue rose by 50.0%, from RMB 185.4 million to RMB 278.0 million, representing 6.9% of total revenue[12]. - System integration service revenue surged by 111.9%, from RMB 320.9 million to RMB 679.8 million, making up 16.8% of total revenue[13]. - Total operating revenue for the first half of 2024 reached RMB 4,041,791,212.19, a 22.2% increase from RMB 3,307,555,567.64 in the same period last year[77]. - Operating profit for the first half of 2024 was RMB 1,613,655,709.35, compared to RMB 1,338,680,209.07 in the previous year, reflecting a growth of 20.5%[78]. - Net profit attributable to shareholders for the first half of 2024 was RMB 1,376,815,468.69, up from RMB 1,207,653,920.80, marking a 14% increase year-over-year[78]. - Comprehensive income attributable to the parent company for the first half of 2024 was RMB 1,412,617,483.14, compared to RMB 1,209,218,451.85 in the previous year, indicating a growth of 16.8%[80]. Operational Highlights - In the first half of 2024, the group processed approximately 352.0 million system transactions for domestic and international airlines, representing a year-on-year increase of about 24.0%[5]. - The group's settlement and clearing system handled approximately 606.1 million transactions, a year-on-year growth of 36.0%[6]. - The revenue from agency settlement for passenger, cargo, and postal services exceeded RMB 29.67 billion, marking a year-on-year increase of 66.6%[6]. - The self-service check-in system (CUSS) was implemented in 235 major airports, processing approximately 221 million departing passengers[4]. - The group expanded its electronic travel distribution (ETD) system, with 204 foreign and regional airlines using its services, processing approximately 506,000 departing passengers at 48 airports[5]. - The group has successfully launched 27 out of 30 certified neutral settlement systems in overseas markets along the Belt and Road Initiative[7]. - The group participated in smart airport projects, signing contracts for the T5 terminal at Xi'an Airport and the third phase of Lanzhou Airport[8]. - The APP front-end system for departure processing dominated in large and medium-sized domestic airports, handling approximately 19.47 million departing passengers, accounting for about 95.9% of returning passengers from Chinese airlines[8]. Cost and Expenditure - Total operating costs for the first half of 2024 were RMB 2,535.3 million, an increase of RMB 357.1 million or 16.4% compared to RMB 2,178.2 million in the first half of 2023[15]. - Personnel costs increased by 31.7%, primarily due to a decrease in capitalized R&D expenses and growth in employee social insurance-related expenditures[15]. - Depreciation and amortization rose by 14.1%, mainly due to increased amortization of intangible assets from self-developed projects[15]. - Software and hardware sales costs surged by 142.1%, attributed to the orderly progress of engineering construction and an increase in the scale and number of projects reaching completion[15]. - The total capital expenditure for the group in the first half of 2024 is RMB 141.5 million, a decrease from RMB 363.1 million in the same period of 2023[37]. - The group has committed capital expenditures of approximately RMB 1,302.1 million, primarily for daily operations and system upgrades[37]. Cash Flow and Financial Position - The net cash inflow from operating activities for the first half of 2024 was RMB 1,287.4 million[21]. - The group maintained a cash and cash equivalents balance of RMB 9,562.5 million as of June 30, 2024[21]. - The fair value of the investment in China Merchants Renhe Life Insurance as of June 30, 2024, is approximately RMB 882.5 million, accounting for 2.9% of the group's total assets[29]. - The asset-liability ratio of the group as of June 30, 2024, is 26.5%, an increase from 23.6% as of December 31, 2023[34]. - The company's current assets totaled RMB 20,895,928,151.69, up from RMB 18,126,205,041.15, indicating an increase of about 15.2% year-over-year[64]. - Cash and cash equivalents reached RMB 9,609,663,328.73, compared to RMB 7,367,554,453.37, reflecting a significant increase of approximately 30.2%[64]. - The company's short-term borrowings rose to RMB 1,151,999,999.00 from RMB 751,589,902.50, marking an increase of around 53.3%[67]. - Total liabilities increased to RMB 7,889,835,245.66 from RMB 6,193,493,525.98, which is an increase of approximately 27.4%[67]. Shareholder and Governance Information - The board of directors has proposed not to declare an interim dividend for the first half of 2024[42]. - Major shareholders include China Civil Aviation Information Group Co., Ltd., holding 43.38% of domestic shares, and China Mobile Communications Group Co., Ltd., holding 14.65%[46]. - The company has fully complied with the corporate governance code except for temporary deviations regarding the roles of the chairman and CEO, and the rotation of directors[56]. - The company aims to maintain high levels of corporate governance and transparency to all market participants and regulatory bodies[55]. - The company has adopted the corporate governance code as part of its governance framework[55]. Strategic Initiatives - The company aims to enhance its international operations and achieve high-quality business objectives while focusing on technological innovation and core technology breakthroughs[41]. - The company is committed to accelerating the construction of a world-class enterprise and enhancing its safety capabilities[41]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[96]. - The financial report is prepared based on the going concern assumption, complying with relevant accounting standards and regulations[107]. Research and Development - Research and development expenses for the first half of 2024 were RMB 431,960,329.68, significantly higher than RMB 275,217,130.34 in the previous year, indicating a 56.8% increase[77]. - The company is focusing on market expansion and technological advancements as part of its strategic initiatives for future growth[82]. Accounting Policies and Financial Reporting - The financial statements comply with the accounting standards issued by the Ministry of Finance, accurately reflecting the company's financial position as of June 30, 2024, and the operating results and cash flows for the first half of 2024[110]. - The company recognizes revenue when control of goods or services is transferred to the customer, which means the customer can dominate the use and obtain almost all economic benefits[192]. - The company recognizes impairment losses for non-current assets held for sale when their carrying amount exceeds the fair value less costs to sell[153].

计算机 证 券 研 究 报 告 上 市 公 司 公 司 研 究/ 公 司 点 评 2024 年 09 月 10 日 中国民航信息网络(00696) ——利润超预期，人力杠杆预示成长信心恢复 报告原因：有业绩公布需要点评 | --- | --- | |--------------------------|-------------------------------| | 市场数据： | 2024 年 09 月 10 日 | | 收盘价（港币） | 9.37 | | 恒生中国企业指数 | 6002.91 | | 52 周最高/最低（港币） | 15.18/7.35 | | H 股市值（亿港币） | 274.19 | | 流通 H 股（百万股） | 932.56 | | 汇率（人民币/港币） | 1.0982 | 一年内股价与基准指数对比走势： -48% 2% 52% 09/1110/1111/1112/1101/1102/1103/1104/1105/1106/1107/1108/11 HSCEI 中国民航信息网络 资料来源：Bloomberg 证券分析师 胡雪飞 A0230522120002 huxf@sws ...

Investment Rating - The report maintains a "Buy" rating for China TravelSky Technology (00696 HK) with a target price of HKD 14 52 per share based on a 20x PE valuation for 2024 [4][11] Core Views - The company reported strong revenue and profit growth in H1 2024 with revenue reaching RMB 4 042 billion (YoY +22 2%) and net profit attributable to shareholders of RMB 1 367 billion (YoY +13 9%) [2][6] - Domestic air travel recovery remains robust with domestic passenger volume in H1 2024 exceeding 2019 levels by 12 1% while international passenger volume recovered to 76 0% of 2019 levels [2][6] - The AIT (Airline Information Technology) business saw revenue growth of 19 8% YoY to RMB 2 265 billion in H1 2024 driven by strong domestic recovery [2][6] - Settlement and clearing business revenue surged 50 0% YoY to RMB 278 million in H1 2024 due to the recovery of international business volume [2][6] - System integration services revenue increased significantly by 111 9% YoY to RMB 680 million in H1 2024 driven by increased project completions [2][6] - Data network services revenue grew steadily by 7 3% YoY to RMB 216 million in H1 2024 supported by increased distribution information service volume [2][6] Financial Forecasts - Revenue is expected to grow by 22 4% in 2024 and 9 0% in 2025 with net profit attributable to shareholders forecasted at RMB 1 932 billion and RMB 2 297 billion respectively [2][11] - The company's gross margin is expected to improve steadily reaching 53 0% in 2024 and 54 1% in 2025 [11][12] - EPS is projected to be RMB 0 66 in 2024 and RMB 0 79 in 2025 [11][12] Business Performance - The company's AIT business continues to recover with domestic air travel showing strong growth while international travel is gradually recovering [2][6] - The settlement and clearing business is benefiting from the recovery of international air travel and the expansion of system and product services [6][8] - System integration services are experiencing significant growth due to increased project completions and the company's involvement in smart airport construction [6][8] - Data network services are maintaining steady growth with the company expanding its overseas market presence and enhancing its distribution capabilities [6][9] Industry Outlook - The domestic air travel market is expected to continue its natural growth while the international market is projected to further recover in H2 2024 [7] - The company is well-positioned to benefit from the ongoing recovery in the aviation and tourism industry as a key player in civil aviation information technology [11]

中国民航信息网络（696） 更新报告 | --- | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|---------------------------------| | 买入 \n受益于民航业需求回暖，业绩恢复增长 | 李宜格 | 2024 年 9 月 3 日 | | 业 绩 符合预期 ： 2024 年 上 半 年 公司收入 40.4 亿元人民币 | 852-25321962 | | | （ YoY+22.2% ）,归属于母公司股东净利润 13.7 亿元（ YoY+13.9% ），主要 | | Vicky.li@firstshanghai.com.hk | | 是受益于民航运输业需求回暖，系统处理旅客量恢复增长所致。公司每股 | 罗凡环 | | | 盈利为人民币 0.47 ...