SA(SH:601021) Changjiang Securities·2025-09-12 02:42Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company reported a revenue of 10.3 billion yuan for the first half of 2025, an increase of 4.35% year-on-year, while the net profit attributable to shareholders was 1.17 billion yuan, a decrease of 14.1% year-on-year. In Q2 2025, the revenue was 4.99 billion yuan, up 6.0% year-on-year, with a total profit of 650 million yuan, an increase of 5.6% year-on-year, and a net profit of 490 million yuan, down 10.7% year-on-year due to tax shield base effects [5][7]. Summary by Sections Event Description - The company disclosed its mid-year report for 2025, showing a revenue of 10.3 billion yuan for the first half, a 4.35% increase year-on-year, and a net profit of 1.17 billion yuan, down 14.1% year-on-year. In Q2 2025, the revenue was 4.99 billion yuan, a 6.0% increase year-on-year, with a total profit of 650 million yuan, up 5.6% year-on-year, and a net profit of 490 million yuan, down 10.7% year-on-year due to tax shield base effects [5][6]. Investment Recommendations - Short-term: The company is expected to benefit significantly from attracting private travel customers with low prices, aligning with new demand trends. - Mid-term: The company's cost efficiency management is becoming normalized, leading to industry-leading operational efficiency and the lowest unit non-fuel costs, which will help restore profitability. - Long-term: There is significant growth potential in lower-tier markets, with the company showing clear growth attributes and expanding market share despite a challenging environment. The company plans to distribute a cash dividend of 798 million yuan in 2024, reflecting a 35.09% payout ratio, which is an increase from 2023. Projected net profits for 2025-2027 are 2.44 billion, 3.05 billion, and 3.81 billion yuan, respectively, corresponding to PE ratios of 21.7, 17.3, and 13.9 times at the current stock price [7][9]. Financial Performance - The company achieved a total revenue of 10.3 billion yuan in the first half of 2025, with a 4.35% year-on-year increase. The Q2 2025 revenue was 4.99 billion yuan, a 6.0% increase year-on-year. The total profit for Q2 was 650 million yuan, up 5.6% year-on-year, while the net profit was 490 million yuan, down 10.7% year-on-year due to tax shield base effects. The company maintained stable unit non-fuel costs despite rising maintenance costs and a decrease in fuel costs by 12.8% year-on-year, contributing to improved financial performance [5][7][12].