China Express(SZ:002928) Xin Lang Cai Jing·2025-08-31 02:45Core Viewpoint - The company reported strong performance in 1H25, with revenue and net profit significantly increasing compared to the previous year, driven by improved passenger load factor, declining oil prices, and increased government subsidies [1] Financial Performance - In 1H25, the company achieved revenue of 3.61 billion yuan, a year-on-year increase of 12.41%, and a net profit of 251 million yuan, compared to 26 million yuan in 1H24 [1] - For 2Q25, revenue reached 1.836 billion yuan, reflecting a year-on-year growth of 15.07% and a quarter-on-quarter increase of 3.48%, with net profit at 169 million yuan, compared to 1.48 million yuan in 2Q24 and 82 million yuan in 1Q25 [1] - The company confirmed other income of 381 million yuan in 2Q25, with unit ASK other income increasing by 19% year-on-year and 1% quarter-on-quarter [1] Operational Trends - The company expects continued strong performance in 3Q25, with capacity growth projected in the low double digits and a slight improvement in passenger load factor [2] - The average ex-factory price of aviation kerosene is anticipated to decline by 11% year-on-year in 3Q25 [2] Profit Forecast and Valuation - The company has raised its net profit forecasts for 2025 and 2026 by 4% to 639 million yuan and 947 million yuan, respectively, primarily due to improved passenger load factor assumptions and increased other income [3] - The current stock price corresponds to a P/E ratio of 18.4 times for 2025 and 12.4 times for 2026, with a target price increase of 21% to 11.1 yuan based on a 15 times P/E for 2026 [3]