Group 1 - The core viewpoint of the report is that China Civil Aviation Information Network (00696) is experiencing a gradual recovery, with optimism regarding its system integration business, but a slow recovery for international airlines is anticipated [1] - The revenue forecast for the company from 2025 to 2027 has been lowered by 4% to 5% due to slower-than-expected tourism recovery [1] - The earnings per share estimates for 2025 to 2027 have been reduced by 16% to 17% to reflect underperformance in the first half of 2025 [1] Group 2 - The management indicated that several changes in the post-pandemic period have negatively impacted recent profitability, including low processing volumes from international airlines, which previously had higher average prices and profit margins compared to domestic airlines [1] - The revenue contribution from the system integration business is approximately 20%, down from double-digit figures before the pandemic [1] - Employee costs are projected to exceed 2 billion RMB for 2023 to 2024, compared to an average of 1.8 billion RMB from 2017 to 2019 [1] Group 3 - Despite the adjustments to revenue forecasts, the company’s future operational leverage potential is reaffirmed, as fixed costs account for 60% to 70% of total operating costs [1] - The management has intensified cost control measures, particularly regarding employee costs, to enhance profitability [1]
大和：降中国民航信息网络(00696)目标价至13港元 复苏呈渐进 重申“买入”评级