Investment Rating - The report gives a "Buy" rating for the company, with a target price of 16.16 HKD based on a 23x PE ratio for 2024 [6][16]. Core Views - The company is deeply integrated with the aviation industry, and the recovery of passenger volumes since 2024 has led to a significant release of revenue potential, indicating a clear upward trend in profitability [2][4]. - The company holds a dominant position in the global GDS market with a 95% market share in China, benefiting from high barriers to entry and a strong competitive advantage [3][4]. - The company is expected to benefit from the increasing penetration of air travel and the digital transformation of the industry, with diversified business lines enhancing its revenue potential [5][17]. Summary by Sections Company Overview - The company is the only GDS supplier in China, with a market share of 95%, and has been a pioneer in aviation information services for over 40 years [21][25]. - It has a strong shareholder structure, with significant stakes held by state-owned enterprises and major airlines, ensuring deep ties with the aviation sector [25][26]. Financial Analysis - The company’s revenue for 2023 was 69.84 billion CNY, a year-on-year increase of 34.04%, and its net profit reached 13.99 billion CNY, up 123.10% from the previous year [34][36]. - The revenue is expected to grow to 87.75 billion CNY in 2024, with a compound annual growth rate of 16.92% from 2024 to 2026 [6][16]. Business Segments - The core business includes aviation information technology services (AIT), settlement and clearing services, and data network services, which are primarily driven by passenger travel volume and sales channel flow [28][29]. - The company is also expanding into system integration services and other diversified business lines, which are expected to contribute to revenue growth [5][17]. Profitability and Valuation - The report forecasts a net profit of 19.04 billion CNY for 2024, reflecting a growth rate of 36.08% [6][16]. - The company’s valuation is supported by a strong recovery in its core business and a favorable market outlook for the aviation industry [2][4].
民航信息化主力军，行业景气上行迎业绩拐点