Hainan Airport Infrastructure(SH:600515) Minsheng Securities·2024-04-20 04:00Investment Rating - The report maintains a "Recommended" rating for Hainan Airport (600515.SH) with a current price of 3.34 CNY [2]. Core Insights - The company's performance in 2023 met expectations, with revenue reaching 6.762 billion CNY, a year-on-year increase of 43.84%, while net profit attributable to shareholders was 0.953 billion CNY, down 48.57% year-on-year [1]. - The recovery in passenger traffic has significantly boosted airport operations, with total passenger throughput reaching 25.46 million, recovering to 109% of 2019 levels [1]. - The company is benefiting from the development of the Hainan Free Trade Port, with various business segments such as airport management and duty-free retail enjoying policy advantages [1]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 6.762 billion CNY, with a growth rate of 43.84%. The net profit attributable to shareholders was 0.953 billion CNY, reflecting a decline of 48.57% [2][6]. - The fourth quarter of 2023 saw revenues of 2.225 billion CNY, a year-on-year increase of 27.35% [1]. Airport Operations - The airport business experienced a strong recovery, with passenger throughput exceeding 2019 levels, achieving 25.46 million passengers, which is 109% of 2019 figures [1]. - The revenue from airport operations reached 2.045 billion CNY, marking a 96% increase year-on-year and a 14% increase compared to 2019 [1]. Duty-Free and Commercial Business - The duty-free and commercial business generated 0.268 billion CNY in revenue, with significant contributions from the new French Garden project at Sanya Phoenix Airport [1]. - The expansion of duty-free retail space is expected to benefit from the Free Trade Port development [1]. Real Estate Development - The real estate segment reported a revenue of 3.005 billion CNY, up 45% year-on-year, with ongoing projects in Haikou and the development of new industries related to air transport [1]. - The company is actively participating in the development of the Haikou Jiangdong New Area, focusing on creating new air transport-related industries [1]. Future Outlook - The company is expected to see net profits attributable to shareholders of 1.399 billion CNY, 1.633 billion CNY, and 1.839 billion CNY for 2024, 2025, and 2026, respectively, with growth rates of 46.8%, 16.8%, and 12.6% [2][6]. - The current market capitalization corresponds to a PE ratio of 27X for 2024, 23X for 2025, and 21X for 2026 [2].