JUNEYAOAIR(SH:603885) Huachuang Securities·2024-05-01 03:06Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 14.7 CNY, representing a 20% upside from the current price of 12.31 CNY [7]. Core Insights - The company reported a net profit of 370 million CNY for Q1 2024, a year-on-year increase of 125% [1]. - Revenue for Q1 2024 reached 5.72 billion CNY, up 28.8% year-on-year, with a non-recurring profit also increasing by 131% [1][2]. - The airline's passenger traffic metrics showed significant recovery, with ASK (Available Seat Kilometers) up 28.7% and RPK (Revenue Passenger Kilometers) up 37.7% compared to the previous year [2]. Financial Data Summary - Revenue and Profitability: - Q1 2024 revenue was 5.72 billion CNY, a 28.8% increase year-on-year, while net profit was 370 million CNY, up 124.6% [1]. - Other income for Q1 2024 was 200 million CNY, reflecting a 19.2% increase year-on-year [1]. - Operational Metrics: - The passenger load factor improved to 85.5%, an increase of 5.6 percentage points year-on-year [2]. - The company achieved a passenger kilometer revenue of 0.47 CNY, down 8.4% year-on-year [3]. - Cost Structure: - Operating costs for Q1 2024 were 4.71 billion CNY, a 20.5% increase year-on-year, with fuel costs at 1.78 billion CNY, up 23.5% [4]. - The unit cost per seat kilometer was 0.34 CNY, down 6.4% year-on-year [4]. Earnings Forecast - The earnings forecast for 2024-2026 has been slightly adjusted, with expected net profits of 1.81 billion CNY, 2.55 billion CNY, and 3.17 billion CNY respectively [4]. - Corresponding EPS for these years is projected to be 0.82 CNY, 1.15 CNY, and 1.43 CNY, with PE ratios of 15, 11, and 9 times [4].