CATHAY PAC AIR(HK:00293) Guan Cha Zhe Wang·2025-11-11 08:31Core Viewpoint - Qatar Airways and Cathay Pacific Airways have officially ended their nearly eight-year equity investment relationship, with Cathay Pacific planning to repurchase 643 million shares from Qatar Airways at a price of HKD 10.8374 per share, totaling approximately HKD 69.69 billion [1][3]. Summary by Sections Transaction Details - Cathay Pacific will buy back 9.57% of its shares from Qatar Airways for a total of approximately HKD 69.69 billion (around RMB 63.83 billion) using internal funds and existing credit lines [1][3]. - The buyback is intended to facilitate Qatar Airways' orderly exit and minimize potential market volatility from share sales [1][3]. Financial Performance - Cathay Pacific reported a net profit of HKD 97.9 billion (approximately RMB 89.6 billion) in 2023, with projections of HKD 98.88 billion (approximately RMB 90.49 billion) for 2024 and HKD 36.51 billion (approximately RMB 32.59 billion) for the first half of 2025 [3]. - The stock price of Cathay Pacific has increased by over 31% since 2025 [3]. Shareholder Structure - Post-buyback, the combined shareholding of the two main shareholders, Swire Group and Air China, is expected to rise to nearly 80% [5]. - Air China's stake will increase from 28.74% to 31.78%, surpassing the 30% threshold set by the Hong Kong Stock Exchange [5]. Market Strategy and Future Outlook - Analysts suggest that Qatar Airways' decision to divest may align with its strategy to focus on emerging markets in Africa and Australia, as well as a reassessment of its investments in regional airlines [4]. - The buyback may provide Cathay Pacific with a more concentrated shareholder structure, enhancing strategic flexibility while facing global aviation industry challenges [6]. Stock Market Reaction - Following the announcement of the buyback plan, Cathay Pacific's stock price has shown an upward trend, closing at HKD 11.84 on November 10 [6].