JUNEYAOAIR(603885) SINOLINK SECURITIES·2024-11-01 00:31Investment Rating - The report maintains a "Buy" rating for the company [2]. Core Views - The company achieved a revenue of 17.49 billion RMB in the first three quarters of 2024, representing a year-on-year growth of 10.2%. The net profit attributable to shareholders was 1.27 billion RMB, also up by 10.1% year-on-year. However, in Q3 2024, the revenue slightly decreased by 0.2% to 6.54 billion RMB, and the net profit dropped by 27% to 780 million RMB [2]. - The decline in Q3 revenue was primarily due to a decrease in ticket prices, despite a 13% increase in both Available Seat Kilometers (ASK) and Revenue Passenger Kilometers (RPK). The international RPK saw a significant increase of 122% year-on-year, indicating strong growth in international routes [2]. - The company continues to lead in the recovery of international flights, with a strategy focused on expanding its international route network, including new routes to Australia and Vietnam [2]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported revenues of 17.49 billion RMB, a 10.2% increase year-on-year, and a net profit of 1.27 billion RMB, up 10.1% year-on-year. In Q3 2024, revenues were 6.54 billion RMB, down 0.2% year-on-year, with a net profit of 780 million RMB, down 27% [2]. - The company’s unit revenue per RPK decreased by 11% in Q3 due to a high base from the previous year and a drop in international ticket prices [2]. Operational Analysis - The company’s ASK and RPK both grew by 13% in Q3 2024, with international routes showing a remarkable recovery, surpassing 2019 levels by 58% [2]. - The gross margin for Q3 2024 was 20.7%, down 6.9 percentage points year-on-year, attributed to lower ticket prices [2]. Future Outlook - The company maintains net profit forecasts of 1.2 billion RMB, 2.3 billion RMB, and 2.8 billion RMB for 2024, 2025, and 2026 respectively, while continuing to pursue a "Buy" rating [2].