JUNEYAOAIR(SH:603885) Huachuang Securities·2024-08-15 12:36Investment Rating - The investment rating for the company is "Strong Buy" with a target price of 15.2 CNY, indicating an expected upside of 36% from the current price of 11.20 CNY [5][21]. Core Views - The company achieved a profit of 120 million CNY in Q2 2024, representing a year-on-year increase of 240%. The mid-term dividend and share buyback reflect strong confidence in the company's future [3][8]. - The company’s total revenue for 2024 is projected to reach 22.99 billion CNY, with a year-on-year growth rate of 14.4% [3][15]. - The net profit attributable to the parent company is expected to be 1.51 billion CNY in 2024, showing a growth of 100.3% compared to the previous year [3][15]. Financial Performance Summary - Revenue: - 2023A: 20,096 million CNY - 2024E: 22,992 million CNY (14.4% growth) - 2025E: 24,927 million CNY (8.4% growth) - 2026E: 27,252 million CNY (9.3% growth) [3][15] - Net Profit: - 2023A: 751 million CNY - 2024E: 1,505 million CNY (100.3% growth) - 2025E: 2,248 million CNY (49.4% growth) - 2026E: 3,100 million CNY (37.9% growth) [3][15] - Earnings Per Share (EPS): - 2023A: 0.34 CNY - 2024E: 0.68 CNY - 2025E: 1.02 CNY - 2026E: 1.40 CNY [3][15] - Valuation Ratios: - Price-to-Earnings (PE) ratio for 2024E is 16, for 2025E is 11, and for 2026E is 8 [3][15]. Operational Metrics - Passenger Traffic: The average passenger volume in the domestic market increased by 8% year-on-year as of August 13, 2024, with an average seat occupancy rate of 88% [8]. - Cost Management: The operating cost for H1 2024 was 9.2 billion CNY, with a year-on-year increase of 14.3% [8][9]. Shareholder Returns - The company plans to distribute a cash dividend of 0.09 CNY per share, totaling approximately 200 million CNY, with a payout ratio of about 40.3% [8][9]. - The company will also cancel 15 million repurchased shares, which accounts for 0.68% of the total share capital, demonstrating confidence in its financial health [8][9].