SA(SH:601021) Xin Lang Cai Jing·2025-08-29 08:29Core Viewpoint - The company reported a mixed performance for 1H25, with revenue growth but a decline in net profit, indicating challenges in the current market environment [1][3]. Financial Performance - 1H25 revenue reached 10.304 billion yuan, a year-on-year increase of 4.3%, while net profit attributable to shareholders was 1.169 billion yuan, down 14.1% [1]. - In Q2 25, revenue was 4.987 billion yuan, up 6.0%, but net profit fell to 0.491 billion yuan, a decrease of 10.7% [1][2]. - The overall ASK (Available Seat Kilometers) increased by 9.5% in 1H25, while the passenger load factor decreased by 0.8 percentage points to 90.5% [2][3]. Cost and Profitability - The average price of aviation kerosene decreased by 17% year-on-year in Q2 25, leading to a reduction in fuel cost pressure [2]. - Operating costs rose by 6.9% to 4.425 billion yuan, with unit ASK costs declining by 4.7% [2]. - Gross profit margin fell by 0.8 percentage points to 11.3%, with gross profit slightly down by 0.8% to 0.562 billion yuan [2]. Other Income and Tax Impact - Other income increased by 32.3% to 0.354 billion yuan in Q2 25, contributing to a tax pre-profit of 0.650 billion yuan, up 5.6% year-on-year [2]. - The effective tax rate rose significantly from 10.6% in Q2 24 to 24.4% in Q2 25, impacting net profit [2][3]. Dividend and Buyback Plans - The company announced a 36% interim dividend and a share buyback plan of 300-500 million yuan, which may enhance market confidence [3]. Profit Forecast and Valuation - The company revised down its net profit forecasts for 2025-2027 by 13%, 12%, and 10% to 2.374 billion, 3.016 billion, and 3.443 billion yuan respectively [4]. - The target price for 2025 is set at 67.80 yuan, based on a price-to-book ratio of 3.5x, reflecting the company's growth potential in the low-cost aviation sector [4].