CSN(SH:600029) EBSCN·2024-03-27 16:00Investment Rating - The report maintains an "Accumulate" rating for both A-shares and H-shares of the company [2]. Core Views - The company reported significant revenue growth in 2023, achieving an operating income of 159.9 billion yuan, a year-on-year increase of 83.7%, while reducing net losses to 4.2 billion yuan from 32.7 billion yuan in the previous year [2]. - The operational performance showed substantial improvement, with available seat kilometers (ASK) increasing by 97% year-on-year, recovering to 92% of 2019 levels [2]. - The investment loss from Sichuan Airlines negatively impacted the company's performance, with a confirmed investment loss of 2.34 billion yuan [2]. - The company is expected to see continued recovery in air passenger demand in 2024, with profit forecasts for 2024 and 2025 set at 6.1 billion yuan and 8.1 billion yuan, respectively [2]. Summary by Sections Financial Performance - In 2023, the company achieved an operating income of 159.9 billion yuan, a significant increase of 83.7% year-on-year, while the net loss was reduced to 4.2 billion yuan from 32.7 billion yuan in 2022 [2]. - The fourth quarter saw a revenue of 40.4 billion yuan, a decrease of 15.2% quarter-on-quarter, with a net loss of 5.5 billion yuan [2]. Operational Metrics - The company’s ASK grew by 97% year-on-year, reaching 92% of 2019 levels, with domestic ASK up by 13% compared to 2019 [2]. - The overall passenger load factor improved to 78.09%, an increase of 11.74 percentage points year-on-year [2]. Revenue and Cost Analysis - The passenger revenue per kilometer was 0.551 yuan, down 6.2% from 2022 but up 13.4% compared to 2019 [2]. - The main business cost increased by 39.5% year-on-year, with fuel costs rising by 59.3% due to increased production and fuel consumption [2]. Investment and Future Outlook - The report anticipates a continued recovery in air passenger demand in 2024, with profit estimates of 6.1 billion yuan for 2024 and 8.1 billion yuan for 2025 [2]. - The company’s fleet size at the end of 2023 was 908 aircraft, a net increase of 14 aircraft from the previous year [2].