Investment Rating - The report maintains a "Buy" rating for the company with a target price adjusted to HKD 12, indicating a potential upside of 21% from the previous closing price [2][3]. Core Views - The company's performance in 2023 met expectations, with revenue reaching RMB 6.98 billion, a year-on-year increase of 34%, and net profit attributable to shareholders at RMB 1.40 billion, up 123% year-on-year [2][3]. - The company is expected to benefit from the recovery of the civil aviation industry in China, with significant growth in its core aviation information services segment [2][3]. - The report highlights the need for improved dividend payouts, as the company proposed a final cash dividend of HKD 0.16 per share for 2023, resulting in a payout ratio of 33%, up from 25% in the previous year [2][3]. Summary by Sections Financial Performance - In 2023, the company reported total revenue of RMB 6.98 billion, a 34% increase from 2022, and net profit of RMB 1.40 billion, reflecting a 123% growth [2][3]. - Earnings per share (EPS) for 2023 was RMB 0.48, with a proposed dividend of HKD 0.16 per share [2][3]. - The company’s operating cash flow for 2023 was RMB 1.37 billion, with cash and cash equivalents totaling RMB 7.28 billion, indicating a healthy financial position [2][3]. Business Segments - The aviation information services segment generated RMB 3.85 billion in revenue, a 149% increase year-on-year, with a total processing volume of 620 million passengers, up 148.7% from 2022 [2][3]. - Revenue from settlement and clearing services reached RMB 450 million, a 52.1% increase, while system integration services revenue decreased by 41.4% to RMB 990 million due to fewer projects meeting completion criteria [2][3]. - Data network revenue declined by 5.2% to RMB 390 million, primarily due to reduced demand for distribution information technology services [2][3]. Cost Management - Total operating costs for 2023 were RMB 5.3 billion, a 12.1% increase, driven by rising labor costs and increased commission and promotion expenses [2][3]. - The report emphasizes the company's commitment to stricter cost control measures moving forward to enhance profitability [2][3]. Market Outlook - The report anticipates that the civil aviation industry in China will continue to recover, with the Civil Aviation Administration of China targeting a passenger transport volume of 690 million in 2024, aiming to restore the international passenger market to 80% of pre-pandemic levels by the end of 2024 [2][3]. - The company is positioned to benefit from this recovery due to its established presence in the aviation information technology service sector [2][3].
基本面企稳向好，有望继续受益于民航业复苏