Investment Rating - The report initiates coverage with a "Buy" rating for Meilan Airport, setting a target price of HKD 13.80, representing an expected upside of 89.3% from the current price of HKD 7.29 [2][6]. Core Insights - Meilan Airport is positioned as the only major airport in Hainan capable of releasing capacity, benefiting from the increase in passenger flow and the advantages of the Free Trade Port [4][5]. - The report indicates that the pressure period for the company has passed, with 2024 expected to be a turning point for performance, as key pressure factors have been fully released [4]. - The duty-free business is expected to benefit from both operational area and passenger flow, with potential for an increase in commission rates [4][5]. - The Free Trade Port in Hainan is projected to enhance retail and duty-free sales, with the duty-free market expected to reach HKD 800-900 billion by 2026 [5][27][28]. Company Overview - Meilan International Airport Co., Ltd. operates the Haikou Meilan Airport, focusing on both aviation and non-aviation businesses, including duty-free retail and other commercial activities [11][12]. - The airport has a designed capacity to handle 35 million passengers annually by 2025, with significant expansions completed in recent years [11][17]. Financial Performance - The report outlines a recovery in passenger throughput, with 2023 figures reaching 24.34 million, rebounding from the pandemic's impact [18][19]. - Historical financial performance shows fluctuations, with net profits recorded at -1.34 billion in 2020, followed by a recovery to 765 million in 2021 [18][19]. Future Outlook - The report emphasizes the strategic importance of Hainan's Free Trade Port, which aims to enhance the region's attractiveness for tourism and commerce, with significant policy support from the government [27][29]. - The anticipated full operation of the Free Trade Port by 2025 is expected to create a larger retail market, benefiting both conventional retail and duty-free sectors [28][29].
海南自贸港红利与产能共振，枢纽价值重估