GBIAC(SH:600004) SINOLINK SECURITIES·2024-09-02 05:05Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company achieved a revenue of 3.46 billion RMB in H1 2024, representing a year-on-year growth of 19.7%, and a net profit attributable to shareholders of 440 million RMB, up 177.0% [2] - The recovery in operations is accelerating, with aircraft takeoffs and landings reaching 248,400, passenger throughput at 36.65 million, and cargo and mail throughput at 1.14 million tons, showing year-on-year increases of 15.17%, 26.67%, and 25.53% respectively [2] - The gross profit margin significantly increased, with a gross margin of 29.4% in Q2 2024, up 8 percentage points year-on-year, while the expense ratio slightly decreased [2] - International travel policies have been improving, which is expected to boost the company's performance, particularly in international routes and duty-free business [2] Summary by Sections Financial Performance - In H1 2024, the company reported an operating income of 3.46 billion RMB, a 19.7% increase year-on-year, and a net profit of 440 million RMB, a 177.0% increase [2] - Q2 2024 saw an operating income of 1.80 billion RMB, with a year-on-year growth of 17.4%, and a net profit of 250 million RMB, up 120.8% [2] - The company’s aviation revenue reached 1.44 billion RMB, growing by 26.62%, while non-aviation revenue was 2.02 billion RMB, up 15.24% [2] Cost and Profitability - The company’s operating costs in Q2 2024 increased by only 5.4%, leading to a net profit margin of 13.9%, which is a 6.5 percentage point increase year-on-year [2] - The expense ratio for Q2 2024 was 8.3%, down 2.6 percentage points year-on-year, with reductions in sales, management, and financial expense ratios [2] Future Outlook - The company has adjusted its net profit forecasts for 2024-2026 to 1.21 billion RMB, 1.53 billion RMB, and 770 million RMB respectively, from previous estimates of 1.41 billion RMB, 1.56 billion RMB, and 800 million RMB [2] - The ongoing recovery in international travel and the extension of duty-free agreements until 2029 are expected to positively impact future earnings [2]