Investment Rating - The report maintains a "Buy" rating for China TravelSky Holding Company (0696 HK) [2] Core Views - Domestic civil aviation passenger market continues steady recovery, benefiting from intelligent transformation of aviation industry [1] - Company revenue reached RMB 13 67 billion in H1 2024, up 13 9% YoY [2] - Net profit attributable to parent company reached RMB 9 69 billion, with current stock price at HK$9 69 [2] - All business segments achieved YoY revenue growth in H1 2024 [2] Business Performance - Airline IT services revenue increased 24 0% YoY to RMB 22 65 billion due to higher system processing volume [2] - Settlement and clearing revenue grew 19 8% YoY to RMB 6 80 billion [2] - System integration service revenue surged 111 9% YoY to RMB 2 16 billion [2] - Data network revenue rose 7 3% YoY, while other business revenue declined 15 1% [2] Market Trends - Domestic passenger scale showed steady growth, exceeding 2019 levels [2] - International civil aviation market showed stable recovery [2] - ETD system processed 3 52 billion passenger trips in H1 2024, up 24 0% YoY [2] - Domestic segment processing volume increased 15 8% YoY, while international segment surged 193 4% [2] Financial Projections - 2024E revenue forecast at RMB 8 325 billion, with 19 2% YoY growth [3] - 2024E net profit forecast at RMB 1 954 billion, with EPS of RMB 0 67 [3] - 2025E revenue expected to reach RMB 10 509 billion, with 12 1% YoY growth [3] - 2025E net profit projected at RMB 2 491 billion, with EPS of RMB 0 85 [3] Balance Sheet - Total assets expected to grow from RMB 25 236 billion in 2022 to RMB 32 970 billion in 2026E [4] - Cash and short-term investments projected to increase from RMB 7 577 billion in 2022 to RMB 14 660 billion in 2026E [4] - Shareholders' equity forecast to rise from RMB 19 741 billion in 2022 to RMB 27 017 billion in 2026E [4] Cash Flow - Operating cash flow projected to increase from RMB 1 336 billion in 2022 to RMB 3 513 billion in 2026E [5] - Free cash flow expected to grow from RMB 1 678 billion in 2022 to RMB 1 746 billion in 2026E [5] - Net cash flow forecast to rise from RMB 1 136 billion in 2022 to RMB 2 221 billion in 2026E [5]

Investment Rating - The report maintains a rating of "Accumulate" for China Civil Aviation Information Network (0696) [2][5]. Core Views - The company has demonstrated strong earnings growth exceeding expectations, driven by effective cost control and a recovery in international business [4][5]. - The first half of 2024 saw record-high passenger traffic in China's civil aviation market, with the company's revenue and booking volume showing significant growth compared to pre-pandemic levels [5]. - The company is expected to benefit from the ongoing smart civil aviation construction and the recovery of international business, which will enhance its profitability [5]. Summary by Relevant Sections Performance Overview - In the first half of 2024, the company achieved a net profit of 1.37 billion RMB, a 14% year-on-year increase, surpassing market expectations [5]. - Revenue for the first half of 2024 increased by 5% compared to the same period in 2019, despite the international business recovery still lagging [5]. Financial Projections - The report projects net profits for 2024, 2025, and 2026 to be 1.9 billion, 2.3 billion, and 2.5 billion RMB respectively [5]. - The company’s revenue is expected to grow significantly, with estimates of 8.37 billion RMB in 2024, 9.32 billion RMB in 2025, and 10.01 billion RMB in 2026 [8]. Cost Management - The report highlights that cost control, particularly in labor costs, will be crucial for the company's profitability recovery, as labor costs accounted for nearly 40% of total costs in the first half of 2024 [5]. - The company aims to maintain competitive salaries and improve talent incentive mechanisms to manage costs effectively [5]. Market Position - The company holds a dominant position in the civil aviation information service sector in China, benefiting from accelerated airport construction and expansion projects [5]. - The report anticipates a peak in project completion and settlement in the later stages of the 14th Five-Year Plan, which will significantly contribute to profits [5].

Investment Rating - The investment rating for China Civil Aviation Information Network (00696) is "Buy" (maintained) [7][10]. Core Views - The report highlights a recovery in the aviation industry, leading to a gradual realization of performance improvements. The company reported a revenue of 4.04 billion yuan for H1 2024, a year-on-year increase of 22.2%, and a net profit attributable to shareholders of 1.37 billion yuan, up 13.9% year-on-year [10][11]. Summary by Sections Financial Performance - In H1 2024, the company processed approximately 350 million passengers, with a year-on-year increase of 24%. The revenue from AIT reached 2.27 billion yuan, a 19.8% increase compared to the previous year, and up 1.8% compared to the same period in 2019 [10][11]. - The company's operating costs for H1 2024 were 1.63 billion yuan, with a growth rate lower than revenue, resulting in an increase in gross margin from 56.5% in H1 2023 to 59.6% in H1 2024 [10][11]. - The report projects revenues for 2024-2026 to be 8.775 billion, 9.378 billion, and 10.337 billion yuan, representing year-on-year growth rates of 25.65%, 6.87%, and 10.23% respectively [10][11]. Business Segments - The report indicates that all major business segments experienced revenue growth due to the strengthening aviation market. The revenue from data networks and settlement services increased by 7.3% and 50.0% year-on-year, respectively [10][11]. - The completion of airport projects and system integration services generated 680 million yuan in revenue, marking a significant year-on-year increase of 111.9% [10][11]. Future Outlook - The report anticipates continued growth in passenger traffic, with a projected 420 million passengers in the first seven months of 2024, a year-on-year increase of 21.2%. This growth is expected to support revenue increases in the company's core and ancillary businesses [10][11]. - The company is expected to enter a phase where revenue growth outpaces cost growth, with potential for further revenue from international routes and system integration services [10][11].

Financial Performance - Total operating revenue for the six months ended June 30, 2024, was RMB 4,041,791, an increase of 22.2% compared to RMB 3,307,556 in the previous period[4] - Operating profit for the same period was RMB 1,613,656, up 20.5% from RMB 1,338,680 in the prior year[4] - Net profit attributable to shareholders for the period was RMB 1,367,221, representing a 13.9% increase from RMB 1,200,385 in the previous period[5] - The company reported a total comprehensive income of RMB 1,422,212 for the period, compared to RMB 1,216,487 in the previous period, marking a 17.0% increase[5] - Basic and diluted earnings per share for the period were both RMB 0.47, an increase from RMB 0.41 in the prior year[5] - The company’s total operating costs were RMB 2,535,291, which is a 16.4% increase from RMB 2,178,181 in the previous period[4] - The company’s investment income decreased to RMB 39,335 from RMB 44,643 in the previous period, reflecting a decline of 11.5%[4] - In the first half of 2024, the total profit of the group was RMB 1,605.7 million, an increase of approximately 19.2% compared to RMB 1,346.9 million in the first half of 2023[62] - The net profit attributable to the parent company's shareholders was RMB 1,367.2 million, up about 13.9% from RMB 1,200.4 million in the same period last year[70] - Total revenue for the first half of 2024 was RMB 4,041.8 million, representing an increase of RMB 734.2 million or 22.2% from RMB 3,307.6 million in the first half of 2023[64] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 29,976,966, an increase from RMB 27,500,129 at the end of the previous year[9] - Total liabilities increased to RMB 7,949,064 thousand, up from RMB 6,481,535 thousand, representing a growth of approximately 22.7% year-over-year[11] - Current liabilities rose to RMB 7,889,835 thousand, compared to RMB 6,193,494 thousand, marking an increase of about 27.4% year-over-year[11] - Non-current liabilities decreased significantly to RMB 59,229 thousand from RMB 288,042 thousand, a decline of approximately 79.4% year-over-year[11] - Total equity reached RMB 22,027,902 thousand, up from RMB 21,018,594 thousand, reflecting an increase of about 4.8% year-over-year[12] - The company’s retained earnings grew to RMB 12,953,116 thousand from RMB 12,171,069 thousand, an increase of about 6.4% year-over-year[12] - The company’s short-term borrowings increased to RMB 1,152,000 thousand from RMB 751,590 thousand, a rise of approximately 53.3% year-over-year[11] - The asset-liability ratio as of June 30, 2024, was 26.5%, an increase from 23.6% as of December 31, 2023[89] Cash Flow and Investments - Cash and cash equivalents increased to RMB 9,609,663, up from RMB 7,367,554 at the end of the previous year, reflecting a growth of 30.0%[7] - The company achieved a net cash inflow from operating activities of RMB 1,287.4 million in the first half of 2024[71] - The total investment in non-listed company, China Merchants Renhe Life Insurance Co., Ltd., was valued at RMB 882,453 thousand as of June 30, 2024, reflecting an increase from RMB 830,474 thousand year-over-year[31] - The fair value of the investment in China Merchants Renhe Life Insurance was approximately RMB 882.5 million, representing 2.9% of the group's total assets[85] - The group’s cash and cash equivalents amounted to RMB 9,562.5 million, with 97.85% in RMB, 1.83% in USD, and 0.16% in HKD[73] Operational Highlights - In the first half of 2024, the group processed approximately 352.0 million passengers through its electronic travel distribution (ETD) system, representing a year-on-year increase of about 24.0%[50] - The group completed approximately 606.1 million transactions in its settlement and clearing system, a year-on-year growth of 36.0%[53] - The revenue from agency settlement for passenger, cargo, and postal transport exceeded RMB 29.67 billion, reflecting a year-on-year increase of 66.6%[53] - The group signed contracts with 4 airlines for its Airline Total Operations Management System (ATOMS), enhancing operational efficiency and safety[52] - The group’s self-service check-in system (CUSS) is now in use at 235 major airports, processing approximately 221 million departing passengers[52] - The group has expanded its market presence with 204 foreign and regional airlines using its airport passenger processing system services, handling about 5.06 million departing passengers[50] - The group has successfully implemented 27 out of 30 certified neutral settlement systems in overseas markets along the Belt and Road Initiative[55] - The group’s smart airport solutions have been deployed at 252 airports, enhancing connectivity and service efficiency[56] - The group has signed contracts for new projects, including the T5 terminal at Xi'an Airport and the third phase of Lanzhou Airport, focusing on digital and intelligent solutions[56] Research and Development - Research and development expenses rose to RMB 431,960, a significant increase of 56.8% compared to RMB 275,217 in the prior year[4] - The company received 12 technology awards and 92 patent authorizations, including 87 invention patents, marking a significant achievement in innovation[62] Corporate Governance and Compliance - The company maintains a preferential corporate income tax rate of 15% as a recognized "High-tech Enterprise" until 2025[23] - The company is committed to improving corporate governance and has adopted the corporate governance code as per the listing rules, although it has temporarily deviated from certain provisions[100][101] - The audit and risk management committee has discussed and reviewed the unaudited interim results for the six months ended June 30, 2024, focusing on internal controls and risk management[104] - The company has fully complied with the standard code regarding securities trading by directors during the six months ended June 30, 2024[103] Future Outlook - The company anticipates a stable growth trend in the Chinese civil aviation transportation market, with domestic passenger traffic continuing to grow naturally and international passenger traffic further recovering[96] - The company aims to enhance its technological innovation capabilities and promote key core technology breakthroughs while accelerating the establishment of a world-class enterprise[96]

申万宏源研究 上海市南京东路99号 | +86 1 39 7818 www.swsresearch.com 简单金融 成就梦想 计算机 | 公司研究 航班订座量高增，业绩进一步恢复可期 04年5月10日 中国民航信息网络 (0696.HK) 买入 公司发布03 年报： 03 年，公司营业总收入69.84亿元，同比增长34%，归母净利润13.99 亿元，同比增长13 %。 上调评级 四大业务中，航空信息技术服务业务收入增速明显。03 年，航空信息技术服务业务收入 38.51 亿元，同比增长 149%，主要是受益于订座量同比高增；结算及清算服务业务收入 4.47 亿元，同 比增长5% ，主要是受益于订座量同比高增；系统集成服务业务收入9.94亿元，同比下降41%， 市场数据：04年5月10日 主要原因是受机场项目竣工时点影响，达到竣工的项目数量低于去年水平；数据网络服务收入3.90 收盘价（港币） 10.9 亿元同比下降5%，主要原因是随着接口等新模式的使用，传统的代理人业务数量有所下降。 恒生中国企业指数 6,718.86 5周最高/最低价 (港币) 15.36/7.45 03 年，公司处理的国内外商营航空公司 ...

国泰君安版权所有发送给上海东方财富金融数据服务有限公司.东财接收研报邮箱.ybjieshou@eastmoney.com p1 股 票 研 究 [Table_industryInfo] 运输 [ Table_Main[中I Tnaf 国bol]e 民_Ti航tle]信 息网络（0696） [评Tab级le_：Inv est] 增持 当前价格（港元）： 10.60 国际占比稳步恢复，成本管控将是关键 2024.05.05 海 [ 交Ta易bl数e_M据a rket] 外 岳鑫(分析师) 52周内股价区间（港元） 7.45-15.36 当前股本（百万股） 2,926 公 0755-23976758 当前市值（百万港元） 31,018 司 yuexin@gtjas.com 证书编号 S0880514030006 （ [ Table_PicQuote] 中 本报告导读： 52周内股价走势图 预计中国航空需求韧性良好，订座量将恢复增长且国际占比将逐步恢复，且受益智慧 国 中国民航信息网络 恒生指数 香 民航建设。预计公司成本管控将是盈利能力恢复的关键。 3% 摘要： 港 -8% [T abl行e_S业um主m导ar地 ...

Investment Rating - The report gives a "Buy" rating for the company, with a target price of 16.16 HKD based on a 23x PE ratio for 2024 [6][16]. Core Views - The company is deeply integrated with the aviation industry, and the recovery of passenger volumes since 2024 has led to a significant release of revenue potential, indicating a clear upward trend in profitability [2][4]. - The company holds a dominant position in the global GDS market with a 95% market share in China, benefiting from high barriers to entry and a strong competitive advantage [3][4]. - The company is expected to benefit from the increasing penetration of air travel and the digital transformation of the industry, with diversified business lines enhancing its revenue potential [5][17]. Summary by Sections Company Overview - The company is the only GDS supplier in China, with a market share of 95%, and has been a pioneer in aviation information services for over 40 years [21][25]. - It has a strong shareholder structure, with significant stakes held by state-owned enterprises and major airlines, ensuring deep ties with the aviation sector [25][26]. Financial Analysis - The company’s revenue for 2023 was 69.84 billion CNY, a year-on-year increase of 34.04%, and its net profit reached 13.99 billion CNY, up 123.10% from the previous year [34][36]. - The revenue is expected to grow to 87.75 billion CNY in 2024, with a compound annual growth rate of 16.92% from 2024 to 2026 [6][16]. Business Segments - The core business includes aviation information technology services (AIT), settlement and clearing services, and data network services, which are primarily driven by passenger travel volume and sales channel flow [28][29]. - The company is also expanding into system integration services and other diversified business lines, which are expected to contribute to revenue growth [5][17]. Profitability and Valuation - The report forecasts a net profit of 19.04 billion CNY for 2024, reflecting a growth rate of 36.08% [6][16]. - The company’s valuation is supported by a strong recovery in its core business and a favorable market outlook for the aviation industry [2][4].

感谢大家参加本次电话会议会议即将开始请稍后 This telephone conference is only for professional investors and clients of Zhaoshan Securities. The speeches of the guests only represent their personal views. All information or views do not constitute investment suggestions. Zhaoshan Securities is not authorized to publish in advance. Any institution or individual is strictly prohibited from recording, producing, transmitting, transmitting, copying, editing, modifying, etc. All investors, good morning. Welcome to China Airlines' sma ...

各位投资人大家上午好欢迎参加招商证券举办的中国航信小三维电话交流会我是今天会议主持人招商交易研究员魏云今天我们很荣幸是邀请到了公司三位领导投关经理生总财务部会计经理冯总以及投关杨总与大家进行这样一个线上的交流首先我们还是先请公司的领导做一个开场的发言然后我们再进入问答环节谢谢 好的谢谢委员也谢谢各位投资者的关注我是公司顾客专员杨红先跟大家介绍一下我们公司整体二三年度业绩情况大家手上有公司业绩PPT的话也请翻到第八页二三年度公司实现营业总收入达到了69.8亿元同比增加了34%同时第一轮达到了14.5亿元同比增加了113% 再请将PPT翻到第九页是公司对于主营业务的一个收入拆分那么总体来说呢公司的主营业务都是和旅客量呈现一个正相关的关系 在二三年度 民航业整体呈现一个有序恢复的局面带动公司总的系统处理量已经恢复到2019年同期的90%那么随着旅客量的恢复同时也带动公司收入的前两大板块一个是航空信息技术服务收入一个是捷径算收入这两项都分别同比增长149%和52.1%那么下一项业务收入是系统集成收入 这一项它和旅客量不是一个直接挂钩的关系它主要是受到机场项目验收指点的影响在2023年度就是整体达到竣工验收条件的项目无 ...

Financial Performance - For the fiscal year ending December 31, 2023, the company reported total revenue of RMB 6,983,847,000, an increase from RMB 5,210,106,000 in the previous year, representing a growth of approximately 34%[5] - The total profit for the year was RMB 1,612,136,000, up from RMB 735,139,000 in 2022, indicating a growth of about 119%[5] - Net profit attributable to shareholders was RMB 1,398,952,000, compared to RMB 627,052,000 in the prior year, reflecting an increase of approximately 123%[5] - Basic and diluted earnings per share for the year were RMB 0.48, up from RMB 0.21 in 2022, indicating a growth of approximately 128%[5] - In 2023, the company achieved total revenue of RMB 6.98 billion, a year-on-year increase of 34.0%[9] - Net profit attributable to shareholders reached RMB 1.40 billion, representing a year-on-year growth of 123.1%[9] - Earnings per share increased to RMB 0.48, up 128.6% compared to the previous year[9] - The company’s pre-tax profit was approximately RMB 1,612.1 million, an increase of about 119.3% compared to 2022[30] - The total operating costs for the fiscal year 2023 amounted to RMB 5,300.8 million, an increase of RMB 571.3 million or 12.1% compared to RMB 4,729.5 million in 2022[34] Assets and Liabilities - The company's total assets as of December 31, 2023, reached RMB 27,500,129,000, up from RMB 25,237,623,000 in 2022, marking a growth of about 9%[6] - Total liabilities increased to RMB 6,481,535,000 from RMB 5,495,393,000, which is an increase of approximately 18%[6] - The total equity of the company rose to RMB 21,018,594,000, compared to RMB 19,742,230,000 in the previous year, representing an increase of about 6.5%[6] - The asset-liability ratio of the group as of December 31, 2023, is 23.6%, up from 21.8% in the previous year[57] - Total liabilities increased to RMB 6,481,535,099.77, up from RMB 5,495,393,104.48, representing a growth of approximately 18% year-over-year[186] - Total assets reached RMB 27,500,129,430.98, compared to RMB 25,237,623,430.91 in the previous year, indicating an increase of about 9%[188] Operational Highlights - The company processed approximately 620.1 million passenger trips through its electronic travel distribution (ETD) system, a growth of about 148.7% year-on-year[14] - Domestic passenger traffic exceeded pre-pandemic levels, growing by 1.5% compared to 2019, while international routes recovered to 62.8% of 2019 levels[13] - The company expanded its distribution network to reach 33 countries and regions, supporting the recovery of Chinese airlines in international markets[9] - The group processed approximately 1,017.7 million transactions in its settlement and clearing system, representing a year-on-year growth of 78.1%[18] - Revenue from agency settlement for passenger, cargo, and postal transport exceeded 47.53 billion RMB, marking a year-on-year increase of 116.2%[18] Research and Development - The company achieved significant advancements in technology innovation, including the establishment of a national enterprise technology center and a national postdoctoral research station[28] - Research and development expenses for 2023 were RMB 863,038,653.00, up from RMB 701,713,632.36 in the previous year, indicating a 23% increase[192] Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange Listing Rules, ensuring effective governance policies are in place[62] - The company deviated from the code regarding the separation of roles between the Chairman and CEO, with the same individual currently holding both positions as a transitional arrangement[62] - The company has established four specialized committees: Audit and Risk Management Committee, Remuneration and Assessment Committee, Nomination Committee, and Strategic and Investment Committee[68] - The company emphasizes a corporate culture focused on safety, service, and innovation, aiming to create value through information services[64] - The company has implemented strict anti-corruption policies and established transparent reporting channels for whistleblowers[67] Shareholder Information - The company proposed a final cash dividend of RMB 468.2 million for the fiscal year 2023, which equates to RMB 0.16 per share based on 2,926,209,589 shares outstanding[41] - As of December 31, 2023, the reserves available for distribution to shareholders amounted to RMB 8,200.3 million, up from RMB 7,419.5 million as of December 31, 2022[42] - The company reported a total issued share capital of 2,926,209,589 shares as of December 31, 2023, with a par value of RMB 1.00 per share[116] - Domestic shares account for 68.13% of the total share capital, while H shares represent 31.87%[116] Compliance and Risk Management - The company has established a comprehensive risk management and internal control system to ensure the effectiveness of its operations, with the board responsible for its implementation and management[93] - The internal control system is subject to annual evaluations to identify and rectify any deficiencies, ensuring continuous improvement and compliance with external regulations[97] - The company has a dedicated internal audit department that assesses the effectiveness of the risk management and internal control systems annually[98] - The audit report confirmed that the financial statements fairly reflect the company's financial position as of December 31, 2023[174] Employee Information - The company has a workforce of 6,620 employees as of December 31, 2023[2] - The company has a total of 6,620 employees, with a gender ratio of approximately 6:4, which aligns with regional and industry standards[101] Investor Relations - The company has responded to nearly 3,500 investor inquiries throughout the year, achieving a 100% response rate for investor hotline and email inquiries[109] - The company has conducted extensive communication with nearly 900 domestic and international shareholders and investors through various channels, including performance briefings and one-on-one meetings[109] - The company has maintained effective communication policies to ensure transparency and compliance with shareholder and investor needs[107]