BEIJING AIRPORT(00694) 华泰证券·2025-03-30 04:05Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 3.40 [6][7]. Core Views - The company is expected to narrow its losses in 2024, with a forecasted revenue increase of 20.5% to HKD 5.492 billion, while the net loss is projected to be HKD 1.39 billion, a reduction of 18.1% year-on-year. The company aims to achieve profitability by 2025 [1][4]. - The recovery in passenger traffic is ongoing, with a 16.4% year-on-year increase in passenger throughput in the second half of 2024, reaching 34.67 million, which is 68% of the levels seen in 2019 [2][3]. - The company is focusing on cost control and operational efficiency, which is expected to contribute positively to its financial performance in the coming years [1][3]. Summary by Sections Financial Performance - In 2024, the company recorded a revenue of HKD 5.492 billion, a 20.5% increase from the previous year, while the net loss was HKD 1.39 billion, down 18.1% year-on-year. The second half of 2024 saw a net loss of HKD 1.013 billion, compared to HKD 655 million in the same period of 2023 [1][2]. - The operating costs in the second half of 2024 decreased by 6.3% to HKD 2.956 billion, primarily due to a reduction in franchise management fees [3]. Revenue and Profit Forecast - The company expects to achieve a net profit of HKD 743 million in 2025, following a net loss of HKD 1.39 billion in 2024. The revenue is projected to grow to HKD 6.101 billion in 2025, reflecting an 11.08% increase [4][5]. - The earnings per share (EPS) is expected to turn positive in 2025, with a forecast of HKD 0.02, and further increase to HKD 0.10 in 2026 [5][20]. Valuation Metrics - The target price has been slightly adjusted to HKD 3.40 based on a discounted cash flow (DCF) valuation method, with a weighted average cost of capital (WACC) of 11.4% [4][6]. - The company’s price-to-earnings (PE) ratio is projected to improve significantly from a negative 8.76 in 2024 to 25.95 in 2026, indicating a recovery in profitability [5][20].