CEA(SH:600115) INDUSTRIAL SECURITIES·2024-04-07 16:00Investment Rating - The report maintains an "Add" rating for China Eastern Airlines (600115) [1][2] Core Views - The company reported a narrowing loss with an annual revenue of 113.7 billion yuan, a year-on-year increase of 145.6%, and a net loss attributable to shareholders of 8.168 billion yuan, down from 37.356 billion yuan in the same period last year [1][2] - The operational metrics show a steady recovery in business volume, with available seat kilometers (ASK) recovering to 90.64% of the 2019 level, and passenger turnover (RPK) recovering to 82.20% of the 2019 level [1][2] - The report highlights that the increase in ticket prices has led to a rise in revenue per passenger kilometer, which is up 13.6% compared to 2019 [1][2] Financial Summary - For 2023, the company achieved an operating income of 113.741 billion yuan, with a year-on-year growth of 145.6% [3] - The forecast for net profit attributable to shareholders for 2024-2026 is 5.767 billion, 8.130 billion, and 10.055 billion yuan respectively, indicating a return to profitability [2][3] - The gross margin is projected to improve from 1.1% in 2023 to 14.2% by 2026, reflecting enhanced operational efficiency [3]