Investment Rating - The investment rating for the company is "Buy" with a target price of 15.40 HKD [6][7]. Core Views - The company, China Civil Aviation Information Network (CCAIN), is expected to see a significant increase in net profit for 2024, projected at 2.074 billion RMB, a year-on-year increase of 48.3%. Revenue is anticipated to reach 8.823 billion RMB, up 26.3% year-on-year. The net profit for the second half of 2024 is expected to be 710 million RMB, a substantial increase of 256.1% year-on-year, primarily due to the recognition of revenue from system integration and technical services [1][2][3]. - The company's main business, Aviation Information Technology (AIT), is showing steady growth, with a 13.1% increase in airline business processing volume in the second half of 2024. Despite a 7.4% decrease in unit price, AIT revenue grew by 4.7% to 2.05 billion RMB. The system integration business saw a remarkable 79.4% increase in revenue, reaching 1.21 billion RMB in the second half of 2024 [2][3]. - The company has improved its profit forecast slightly, raising the net profit estimates for 2025 and 2026 by 1% and 2% respectively, and expects net profit for 2027 to be 2.785 billion RMB. The target price has been adjusted to 15.40 HKD based on a 19x PE ratio for 2025 [4][6]. Summary by Sections Financial Performance - For 2024, the company is projected to achieve a net profit of 2.074 billion RMB, a 48.3% increase from the previous year, with total revenue expected to be 8.823 billion RMB, reflecting a 26.3% growth. The second half of 2024 is expected to show a net profit of 710 million RMB, a significant increase of 256.1% year-on-year [1][3]. - The total operating costs for 2024 are projected at 4.31 billion RMB, a 30.0% increase year-on-year, while gross profit is expected to rise by 23.1% to 4.51 billion RMB [3][5]. Revenue Breakdown - AIT revenue for the full year is expected to reach 4.32 billion RMB, a 12.2% increase, while the system integration business is projected to grow by 89.9% to 1.89 billion RMB. Technical support services are anticipated to see a 109.9% increase in revenue in the second half of 2024 [2][4]. Dividend Policy - The company has increased its dividend payout ratio to 35%-45%, up from the previous 30%-40%, indicating a stronger focus on shareholder returns [3].
中国民航信息网络：2H盈利同比高增，主业外增量明显-20250330