SIA(SH:600009) CSC SECURITIES (HK) LTD·2024-07-31 03:00Investment Rating - The report assigns a "Buy" rating to the company with a target price of 38 CNY [3][4]. Core Insights - The civil aviation industry is expected to continue its recovery trend in 2024, with the company achieving a significant year-on-year net profit growth of 436%-557% in the first half of 2024 [4]. - The company plans to repurchase shares worth up to 530 million CNY for equity incentives, reflecting confidence in its development [4]. - Passenger traffic is anticipated to further recover, driving sustained profit growth for the company [4]. Summary by Sections Company Overview - The company operates in the transportation industry, with a current A-share price of 33.85 CNY and a market capitalization of 65.23 billion CNY [1]. Recent Ratings - The latest rating was published on November 29, 2023, with a closing price of 36.63 CNY and a "Trading Buy" recommendation [2]. Financial Performance - In the first half of 2024, the company reported a net profit of 7.1-8.7 billion CNY, a year-on-year increase of 436%-557% [4]. - The total passenger throughput for both Pudong and Hongqiao airports reached 60.36 million, a 43.3% increase year-on-year [4]. - The international flight passenger volume at Pudong Airport increased by 248%, recovering to 78% of the 2019 level [4]. Incentive Plans - The company has revised its stock incentive plan to source shares from the secondary market instead of through directed issuance, planning to repurchase 5.25-10.51 million shares [4]. Earnings Forecast - The company is projected to achieve net profits of 18.3 billion CNY, 28.4 billion CNY, and 33.8 billion CNY for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 96%, 55%, and 19% [4][5]. - The expected earnings per share (EPS) for the same years are 0.74 CNY, 1.14 CNY, and 1.36 CNY, with corresponding price-to-earnings (P/E) ratios of 46, 30, and 25 [4][5].