GBIAC(SH:600004) EBSCN·2024-04-29 02:33Investment Rating - The report maintains an "Accumulate" rating for the company [2] Core Views - The company reported a significant recovery in its financial performance, with a 62% year-on-year increase in operating revenue for 2023, reaching 6.43 billion yuan, and a return to profitability with a net profit of 440 million yuan [2] - The recovery in air travel demand has led to increased aviation service revenue, with passenger throughput in 2023 reaching approximately 63.17 million, a 142% increase year-on-year [2] - The company is focusing on comprehensive reforms to enhance commercial management efficiency, resulting in a 44% increase in non-aviation revenue to 3.94 billion yuan in 2023 [2] - Cost control measures have led to a rapid improvement in gross margin, with the gross margin for aviation services turning positive at 21.1% in 2023, compared to -24.1% in 2022 [2] - The likelihood of further adjustments to the current duty-free agreement is low, which bodes well for future growth potential in the duty-free business [2] - The investment outlook remains positive, with a projected net profit of 1.1 billion yuan for 2024, despite a downward revision of 27% for 2024 and 35% for 2025 due to slower recovery in overseas routes [2] Summary by Sections Financial Performance - In 2023, the company achieved operating revenue of 6.43 billion yuan, a 62% increase year-on-year, and a net profit of 440 million yuan, marking a turnaround from losses [2] - For Q1 2024, the company reported approximately 1.9 billion yuan in operating revenue, a 22.3% increase year-on-year, and a net profit growth of 319% [2] Aviation Services - The number of aircraft takeoffs and landings in 2023 was approximately 456,000, a 71% increase year-on-year, recovering to 93% of the levels seen in 2019 [2] - Passenger throughput for 2023 was about 63.17 million, recovering to 86% of 2019 levels, with domestic, international, and regional passenger numbers recovering to 101%, 43%, and 63% respectively [2] Non-Aviation Revenue - Non-aviation revenue reached 3.94 billion yuan in 2023, a 44% increase, with rental and franchise income contributing 1.34 billion yuan, up 23.9% [2] Cost Management - The company's operating costs increased by only 2.9% to approximately 5.07 billion yuan in 2023, leading to a significant improvement in gross margin for aviation services [2] Future Outlook - The report anticipates continued recovery in air passenger demand and profitability, with a projected net profit of 1.1 billion yuan for 2024 and 1.43 billion yuan for 2025 [2]