Q1盈利增长，经营优势突显

Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1]. Core Views - The company has turned a profit in 2023, achieving a net profit of 2.257 billion yuan, with a significant improvement in Q1 2024, where it generated 5.168 billion yuan in revenue and a net profit of 0.81 billion yuan. The revenue for 2023 increased by 114.3% year-on-year to 17.938 billion yuan, and the net profit was primarily driven by a recovery in the industry, with supply and demand increasing by 56.4% and 87.3% respectively [5][6]. - The company is expected to continue its performance improvement, with projected net profits of 3.031 billion yuan and 3.903 billion yuan for 2024 and 2025 respectively, and an introduction of 4.309 billion yuan for 2026 [6][13]. Summary by Sections Financial Performance - In 2023, the company reported a revenue of 17.938 billion yuan, a 114.3% increase from the previous year, and a net profit of 2.257 billion yuan, marking a 174.4% year-on-year growth [6][13]. - The Q1 2024 results showed a significant improvement with a revenue of 5.168 billion yuan and a net profit of 0.81 billion yuan, making it the only airline listed company to achieve positive profit growth compared to the same period in 2019 [5][6]. Operational Efficiency - The company has improved its operational efficiency, with a notable increase in flight frequency during peak seasons, leading to a 33.79% year-on-year increase in revenue and a 41.99% increase compared to 2019 [5]. - Cost control measures have been effective, with unit ASK oil costs decreasing by 3.98% year-on-year, and unit ASK excluding oil costs down by 4.37% compared to 2019 [5]. Market Outlook - The company is expected to benefit from the recovery of international routes, with demand anticipated to accelerate in the summer peak season. The overall industry demand is expected to continue its weak recovery, with the company's management advantages likely to drive sustained performance improvement [5][6]. - The projected net profits for 2024, 2025, and 2026 are 3.031 billion yuan, 3.903 billion yuan, and 4.309 billion yuan respectively, with a reasonable valuation range of 55.00 to 64.17 yuan based on a 2024 PB of 3-3.5x [5][6][13].