SA(601021) 中邮证券·2024-01-31 16:00Investment Rating - The report maintains a "Buy" rating for the company, Spring Airlines [6][14]. Core Viewpoints - Spring Airlines is a low-cost airline that operates 121 Airbus A320 aircraft as of the end of 2023, with a market share of 3.89% in China's civil aviation market. The company reported a revenue of 14.1 billion yuan and a net profit of 2.68 billion yuan for the first three quarters of 2023, with an annual profit forecast of 2.25 billion yuan [3][13]. - The company has demonstrated exceptional profitability through stringent cost control measures, achieving a net profit margin of 12.41% in 2019, significantly higher than traditional full-service airlines. The company has successfully returned to profitability in 2023, with record profits in the third quarter [4][18]. - The civil aviation industry is expected to see limited supply growth in 2024, while demand, particularly in international markets, is anticipated to recover, improving market structure and overall industry profitability [5][13]. Summary by Sections Company Overview - Spring Airlines, established in November 2004, transitioned to a joint-stock company in 2010 and completed its IPO in January 2015. The major shareholder is Spring International Travel Service, holding a 51.50% stake [15][16]. Cost Control and Profitability - The company employs a "two singles, two highs, two lows" operational model to minimize costs and maximize profitability. This includes using a single aircraft type and cabin class, achieving high seat occupancy rates, and maintaining low sales and management expenses [19][24]. - In 2023, the company achieved a record net profit of 2.68 billion yuan in the first three quarters, with a net profit margin of 30% in Q3, far exceeding other listed airlines [18][24]. Market Recovery and Growth Potential - The report forecasts that Spring Airlines' revenue will grow to 17.57 billion yuan in 2023, 20.87 billion yuan in 2024, and 23.21 billion yuan in 2025, with respective year-on-year growth rates of 109.9%, 18.8%, and 11.2% [6][14]. - The company is expected to benefit from the ongoing recovery in the civil aviation market, with improved efficiency and cost dilution as the industry continues to rebound [5][13]. Fleet Expansion and Operational Efficiency - Spring Airlines has expanded its fleet to 121 aircraft, with a focus on increasing operational capacity and efficiency. The company has maintained a competitive edge by optimizing its fleet utilization and expanding its route network [26][27]. - The company has seen a significant increase in passenger traffic, with a market share of 3.89% in 2023, up from 3.39% in 2019 [28][29].