by winston » Tue Jul 26, 2016 3:27 pm
<Research Report>M Stanley Expects CN Airlines Interim Net Profit to Grow 15-18%; Predicts CATHAY PAC AIR to Earn 39% Less
Morgan Stanley, in its report, said despite potential forex losses led by RMB depreciation, robust air traffic growth amid relatively low fuel prices in 1H16 should have offset the loss for Chinese airlines.
Looking ahead, the broker expected positive earnings momentum to be supported by a yield recovery in 3Q16.
China?s air traffic (RPK) maintained 14.5% yearly growth in first five months of 2016, higher than Morgan Stanley's full-year estimate of 13% for 2016.
PLF dropped slightly by -0.3% yearly to 82.1%, but remained above full-year estimate of 81.8%.
International momentum remained strong at 31.2%, as compared to domestic growth at 10% yearly.
The broker expected with low oil price, the interim result should be better, expecting net profit growth of 15-18% yearly, except for CATHAY PAC AIR (00293.HK), where the broker expected 39% lower interim net profit due to weaker demand and yield pressure.
Source: AAStocks Financial News
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