China Express(SZ:002928) Huachuang Securities·2025-07-15 05:05Investment Rating - The report maintains a "Strong Buy" rating for Huaxia Airlines, expecting it to outperform the benchmark index by over 20% in the next six months [2][19]. Core Views - The company is projected to achieve a net profit of 2.55 billion yuan in the first half of 2025, representing a year-on-year increase of approximately 875% [1]. - The report emphasizes the continuous improvement in the company's operations, driven by a decrease in oil prices, which is expected to reduce costs and sustain profitability [2]. - The target price for the stock is set at 11.3 yuan, indicating a potential upside of 31% from the current price of 8.65 yuan [2][3]. Financial Performance Summary - For 2025, the expected total revenue is 8.112 billion yuan, with a year-on-year growth rate of 21.1% [3]. - The projected net profit for 2025 is 717 million yuan, reflecting a significant year-on-year growth of 167.6% [3]. - Earnings per share (EPS) for 2025 is estimated at 0.56 yuan, with a price-to-earnings (PE) ratio of 15 times [3]. Operational Data Summary - In the first half of 2025, Huaxia Airlines is expected to operate an average of 382 flights per day, a year-on-year increase of 19.9% [8]. - The average aircraft utilization rate improved to 7 hours per day, an increase of 0.6 hours compared to the previous year [8]. - The company has been actively optimizing its route network to meet the changing travel demands, which has contributed to an increase in passenger load factors [8].