JUNEYAOAIR(603885) 信达证券·2024-07-16 11:00Investment Rating - The report assigns an "Accumulate" rating to the company, indicating a positive outlook for future performance [3][4]. Core Viewpoints - The company has achieved comprehensive coverage of high, medium, and low-end passenger markets, with a dual-brand and dual-hub operational strategy [2][8]. - In 2023, the company reported record revenue and successfully turned a profit, with a net profit of 3.7 billion yuan in Q1 2024, representing a year-on-year increase of 124.6% [2][12]. - The company is expanding its domestic and international routes steadily, with significant growth in passenger traffic and operational efficiency [2][10]. Summary by Sections 1. Business Overview - The company was established in 2006 and has expanded its operations steadily, entering the low-cost airline market in 2014 with the establishment of a subsidiary [2][8]. - The dual-brand strategy includes full-service airline 吉祥航空 and low-cost airline 九元航空, allowing for targeted market positioning [2][16]. 2. Operational Performance - Domestic routes have seen a recovery, with capacity and turnover exceeding pre-pandemic levels by 26.4% and 23.2% respectively in 2023 [10][12]. - International routes are still recovering, with a 26.2% decrease in capacity compared to 2019, but showing signs of growth with a 52.3% increase in capacity in Q1 2024 [10][12]. 3. Financial Performance - The company achieved a record revenue of 20.1 billion yuan in 2023, a 144.8% increase year-on-year, and a net profit of 751 million yuan [4][12]. - The gross profit margin improved to 14.3% in 2023, with further improvements expected in the coming years [4][12]. 4. Profit Forecast and Valuation - The company is projected to achieve net profits of 1.622 billion yuan, 2.265 billion yuan, and 2.716 billion yuan for 2024, 2025, and 2026 respectively, with corresponding earnings per share of 0.73, 1.02, and 1.23 yuan [3][4]. - The current price-to-earnings ratios are estimated at 15.87, 11.37, and 9.48 for the respective years [3][4].