Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 12.0, indicating a potential upside of 28% from the last closing price of HKD 9.4 [1]. Core Insights - The company is benefiting from the recovery in civil aviation demand, leading to a growth in performance. In the first half of 2024, the company's revenue reached RMB 4.04 billion, a year-on-year increase of 22.2%, and net profit attributable to shareholders was RMB 1.37 billion, up 13.9% year-on-year [1]. - The core business revenue is recovering, with aviation information service technology revenue at RMB 2.27 billion, reflecting a year-on-year growth of 19.8%. The total system processing volume increased by 24% compared to the previous year, surpassing the levels seen in 2019 [1]. - The company is positioned as a high-quality supplier in the aviation tourism information technology service industry, expected to benefit from the continuous improvement in aviation demand [1]. Financial Performance Summary - For the first half of 2024, the company reported a net cash inflow from operating activities of RMB 1.29 billion, with cash and cash equivalents amounting to RMB 9.56 billion, indicating a solid financial position [1]. - The total operating costs for the first half of 2024 were RMB 2.54 billion, an increase of 16.4% year-on-year, primarily due to a 31.7% rise in labor costs and a 14.1% increase in depreciation and amortization [1]. - The company anticipates that the domestic passenger transport volume will exceed that of the same period in 2019, with international passenger volume recovering to 80% of 2019 levels [1]. Revenue Breakdown - The settlement and clearing service revenue saw a significant increase of 50% to RMB 280 million, with approximately 610 million transactions processed, a 36% year-on-year growth [1]. - System integration service revenue improved significantly to RMB 680 million, reflecting a year-on-year growth of 111.9%, attributed to the progress in project construction and acceptance [1]. - Data network revenue was RMB 220 million, up 7.3% year-on-year, driven by an increase in distribution information technology service volume [1].
中国民航信息网络：受益于民航业需求回暖，业绩恢复增长