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]
中金：维持中国民航信息网络(00696)“跑赢行业”评级 目标价升至13港元