Eastern Air Logistics (601156)2024-05-23 08:55Industry Overview - In 2023, China's air cargo market achieved a total freight volume of 7.354 million tons, a year-on-year increase of 21.0%, recovering to 97.6% of 2019 levels [2][3] - The cargo turnover volume reached 28.36 billion ton-kilometers, up 11.6% year-on-year, and 7.8% compared to 2019 [3] - Major export goods by air include high-tech products, machinery parts, and personal consumer goods, accounting for 71.58% of total exports [3] - Export destinations are primarily Asia-Pacific (19.38%), Europe (39.95%), and North America (21.56%), totaling 80.89% [3] Company Performance - In 2023, the company reported revenue of 20.621 billion yuan, a decrease of 12.14% year-on-year, and a net profit of 2.488 billion yuan, down 31.58% [4][5] - The basic earnings per share were 1.57 yuan, reflecting a decline of 31.44% [4] - The total cargo turnover volume increased by 18.80%, but revenue from air express services fell by 31.37% due to significant price drops [4] - The gross profit margin improved to 40.48%, an increase of 21.97 percentage points year-on-year [5] Future Outlook - The company aims to leverage Shanghai's position as an international shipping center to enhance its scale and market share [6] - Plans include increasing self-owned capacity and developing a fast, reliable air express product system [6] - The company is focusing on building a cold chain logistics network and enhancing operational efficiency through technology [6] - The company anticipates a stable demand for air cargo in the second half of the year, despite potential risks from U.S. tariffs and changes in European e-commerce policies [20] Operational Insights - The current full freighter load factor is approximately 80%, with a reported load factor of 83.12% for 2023 [7][8] - The company is exploring ways to improve backhaul load factors by optimizing cargo types and establishing long-term contracts with major clients [12] - The fleet consists of 14 B777 freighters, with an average age of 3.5 years, and plans to introduce new aircraft in the future [17][19] Market Dynamics - The air cargo market is experiencing a "not-so-slow" season due to rising demand from cross-border e-commerce and recovering electronic product demand [16] - The TAC price index has shown significant year-on-year growth, aligning with the company's revenue expectations [16] - The company is monitoring the balance between air and sea freight, noting that air freight remains essential for time-sensitive shipments [15]