ZHESHANG SECURITIES·2024-08-31 10:23Investment Rating - The investment rating for the company is "Accumulate" [3][2]. Core Views - In Q2, the company reported a loss of 1.1 billion yuan, which is an increase in loss by 580 million yuan year-on-year, but a decrease in loss by 560 million yuan compared to Q1. For the first half of 2024, the company achieved operating revenue of 79.5 billion yuan, a year-on-year increase of 33%, with a net profit attributable to shareholders of -2.78 billion yuan, a reduction in loss by 670 million yuan year-on-year [1][2]. - The company plans to increase the introduction of C919 aircraft over the next three years, with a total of 48, 40, and 76 aircraft planned for 2024, 2025, and 2026 respectively, which is higher than the previous year's plan [1]. - The company’s passenger revenue per unit decreased by 12% year-on-year in the first half of 2024, with domestic, international, and regional lines showing declines of 7%, 37%, and 21% respectively [1]. Summary by Sections Financial Performance - In Q2, the company’s passenger load factor recovered to 80.2%, with ASK and RPK increasing by 18% and 35% year-on-year respectively. The fleet utilization rate was 8.79 hours per day, an increase of 1.04 hours year-on-year [1]. - The company’s unit operating cost per ASK was 0.45 yuan, a decrease of 2% year-on-year, while the unit fuel cost increased by 18% due to rising fuel prices [1]. - The company recorded investment income of 1.2 billion yuan in the first half of 2024, a decrease of 185 million yuan year-on-year, including 1.07 billion yuan from its investment in Cathay Pacific [1]. Future Outlook - The company is expected to have net profits of -1.9 billion yuan, 4.6 billion yuan, and 8.4 billion yuan for 2024, 2025, and 2026 respectively [2]. - The average price of aviation fuel in the first half of 2024 was 6,638 yuan per ton, and a 5% decrease in fuel prices could reduce fuel costs by 1.36 billion yuan [1].