Core Viewpoint - DBS has raised the target price for China Southern Airlines (01055.HK) to HKD 3.8, increasing earnings forecasts due to lower fuel prices and a weaker USD, despite ongoing pressure on passenger yield and cargo operations [1] Summary by Relevant Categories Financial Performance - The company is expected to benefit from a decline in operating expenses due to falling aircraft fuel prices and a weaker US dollar [1] - Earnings forecasts for the next two years have been increased by 40% and 65% respectively [1] Market Conditions - Passenger yield continues to be under pressure due to consumer price sensitivity and macroeconomic uncertainty [1] - There are adverse factors affecting the cargo segment as well [1] Analyst Rating - DBS maintains a "Hold" rating for China Southern Airlines while adjusting the H-share target price from HKD 3.2 to HKD 3.8 [1]
星展升南航目标价至3.8港元 上调盈测