JUNEYAOAIR(SH:603885) EBSCN·2024-04-08 16:00Investment Rating - The report maintains a rating of "Accumulate" for the company [2] Core Views - The company reported a significant recovery in profitability, achieving an operating revenue of 20.1 billion yuan in 2023, a year-on-year increase of 145%, and a return to profitability with a net profit of 750 million yuan, compared to a loss of 4.15 billion yuan in the previous year [2] - The operational data showed a remarkable recovery, with available seat kilometers (ASK) increasing by 106% year-on-year and a comprehensive passenger load factor of 82.8%, up 15.5 percentage points from the previous year [2] - The company plans to expand its fleet, with a net increase of 12 aircraft in 2024, contributing to further profit growth [2] Summary by Sections Financial Performance - In 2023, the company achieved a net profit of 750 million yuan, recovering from a loss of 4.15 billion yuan in 2022, and the net profit margin improved to 3.7% [3][6] - The operating revenue for 2023 was 20.1 billion yuan, with a growth rate of 144.76% compared to the previous year [3] - The company plans to distribute a cash dividend of 0.069 yuan per share, with a cash dividend rate of approximately 20% [2] Operational Metrics - The company’s ASK increased by 106% year-on-year, with domestic routes up 26% compared to 2019 [2] - The comprehensive passenger load factor reached 82.8%, reflecting a recovery in travel demand [2] - The fleet size at the end of 2023 was 115 aircraft, a net increase of 7 aircraft from the previous year [2] Cost and Profitability - The main operating costs increased by 54.2% year-on-year, driven by a rapid recovery in operations, but the growth was lower than the revenue increase [2] - The gross profit margin improved to 14.3%, compared to -36% in the previous year [2] - The company’s financial expenses decreased by 28% year-on-year, aided by a significant reduction in foreign exchange losses [2] Future Outlook - The company is expected to maintain a positive growth trajectory in 2024, with projected net profits of 2.05 billion yuan and 2.75 billion yuan for 2025 [3] - The expansion of international routes and optimization of wide-body aircraft operations are anticipated to enhance the company's earnings elasticity [2]