SA(SH:601021) Changjiang Securities·2024-11-04 07:24Investment Rating - The investment rating for the company is "Buy" and is maintained [4]. Core Views - The company reported a slight increase in revenue of 0.5% year-on-year for Q3 2024, achieving an operating income of 6.1 billion yuan, while the net profit attributable to shareholders decreased by 32.4% to 1.24 billion yuan [4][5]. - The company demonstrated resilience in demand during the peak season, with significant improvements in operational metrics such as ASK (Available Seat Kilometers) and RPK (Revenue Passenger Kilometers), which increased by 9.6% and 10.7% year-on-year, respectively [5]. - The company’s unit non-fuel cost for Q3 2024 was 0.1925 yuan per seat kilometer, a decrease of 0.8% compared to Q3 2019, showcasing effective cost control measures [5]. - The company is expected to benefit from its low-cost positioning, appealing to private travel customers, and is projected to see a recovery in profitability in the medium term [6]. Summary by Sections Financial Performance - In Q3 2024, the company achieved a total profit of 1.62 billion yuan, with operating profit declining by 18% year-on-year [4][5]. - The company’s revenue for Q3 2024 was 6.1 billion yuan, reflecting a 0.5% increase compared to the same period last year [4]. - The net profit attributable to shareholders was 1.24 billion yuan, down 32.4% year-on-year [4]. Operational Metrics - The company’s passenger load factor improved to 92.7%, an increase of 0.9 percentage points year-on-year [5]. - The unit revenue for Q3 2024 saw a decline of 9.2% compared to Q3 2023, but increased by 5.2% compared to Q2 2019, indicating strong revenue management capabilities [5]. Investment Recommendations - Short-term outlook suggests that the company will benefit from attracting private travel customers due to its low pricing strategy [6]. - Medium-term expectations indicate that the company’s cost efficiency will normalize, leading to a recovery in profitability [6]. - Long-term growth potential is highlighted by the company’s commitment to shareholder returns, with a proposed cash dividend of 684 million yuan for 2023, representing a payout ratio of 30.3% [6].