JUNEYAOAIR(SH:603885) Huachuang Securities·2024-05-01 06:02Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 14.7 CNY [2]. Core Views - The company reported a net profit of 370 million CNY for Q1 2024, representing a year-on-year increase of 125% [2][3]. - Revenue for Q1 2024 reached 5.72 billion CNY, up 28.8% year-on-year, with a significant increase in passenger traffic expected during the upcoming holiday season [3][4]. Financial Data Summary - Q1 2024 revenue was 57.2 billion CNY, a 28.8% increase year-on-year, while net profit was 3.7 billion CNY, up 124.6% year-on-year [3][4]. - Other income for Q1 2024 was 200 million CNY, reflecting a 19.2% increase year-on-year [3]. - The company experienced a foreign exchange loss of 15 million CNY due to a 0.2% depreciation of the RMB against the USD [3]. Operational Data Summary - Available Seat Kilometers (ASK) increased by 28.7% year-on-year, while Revenue Passenger Kilometers (RPK) rose by 37.7% year-on-year [4]. - The passenger load factor reached 85.5%, an increase of 5.6 percentage points year-on-year [4]. Revenue Level Summary - Passenger revenue per kilometer (including fuel surcharge) was 0.47 CNY, down 8.4% year-on-year [5]. - Seat kilometer revenue was 0.41 CNY, a decrease of 2.0% year-on-year [5]. Cost and Expense Summary - Operating costs for Q1 2024 were 47.1 billion CNY, a 20.5% increase year-on-year, with fuel costs at 1.78 billion CNY, up 23.5% year-on-year [6]. - The total expenses (excluding foreign exchange) were 670 million CNY, a 13.4% increase year-on-year [6]. Profit Forecast Summary - The profit 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 [6]. - The report anticipates an EPS of 0.82 CNY for 2024, with a PE ratio of 15 times [6].