Aviation Industry (incl Maintenance, Repair & Overhaul)

[winston]

$5.6t profit boon

http://strategictechinvestor.com/2015/0 ... /#comments

[winston]

not vested

<Research Report>Citi Expects Chinese Airlines 1H15 Net Profits to Grow Significantly, Raises TPs

Citigroup, in its report, stated that with strong traffic growth, they expected airlines 1H15 earnings to surprise on the upside.

Based on the estimates of Citigroup, AIR CHINA (00753.HK), CHINA EAST AIR (00670.HK) and CHINA SOUTH AIR (01055.HK) are expected to record net profit of RMB3.647 billion, RMB3.345 billion and RMB3.451 billion respectively.

The research house's preference in sequence is CHINA EAST AIR, CHINA SOUTH AIR and AIR CHINA.

CHINA EAST AIR is expected to benefit from the opening of Shanghai Disneyland next year and the target price was raised from $7.5 to $8.05.

The target prices of AIR CHINA and CHINA SOUTH AIR were hiked from $12.77 and $10.62 to $12.99 and $10.9 respectively.

All three stocks were rated at Buy.


Source: AAStocks Financial News

[winston]

not vested

<Research Report>JP Morgan: China South Air Issues Positive Profit Alert, Expects Air China, China East Air to Follow

JP Morgan said that CHINA SOUTH AIR (01055.HK) just issued a positive profit alert earlier, expecting the company to swing into profit in the first half of the year and record a net profit ranging from RMB3.4 billion to RMB3.6 billion.

The company said the turnaround was mainly due to stronger traffic and revenue growth as well as lower jet fuel costs.

The target price was set at $9.2 and the rating was maintained at Overweight.

The research house expected AIR CHINA (00753.HK) and CHINA EAST AIR (00670.HK) will also release positive profit alert in the coming weeks.

Source: AAStocks Financial News

[winston]

Airline JetBlue touches an all-time high… shares are up 40%-plus in 2015.

[winston]

vested in Air China and CEA

<Research Report>Brokers' Forecast on Chinese Airlines' EPS Changes after RMB Appreciation (Table)

Citibank, in its report, listed the earnings forecast on Chinese airlines in 2015 and 2016 for every 1% more RMB appreciation:

Assuming RMB appreciates by 1%
Stock / 2015 EPS Change / 2016 EPS Change
AIR CHINA (00753.HK) / +6.4% / +4.9%
CHINA EAST AIR (00670.HK) / +8.2% / +5.2%
CHINA SOUTH AIR (01055.HK) / +7.6% / +5.2%

Source: AAStocks Financial News

[winston]

<Research Report>Deutsche: Each ppt of RMB Depreciation Would Lead to 6-10% Cuts in Chinese Airlines? Earnings

Deutsche Bank, in its report, pointed out that Chinese airlines' H shares corrected by approximately 13-17% in this morning's trading period.

The research house believed that the correction was mainly due to the RMB depreciation against the USD and maintained the view that every percentage point of RMB depreciation would lead to 6-10% cuts in Chinese airlines' earnings, due to FX loss from USD debt revaluation.

However, Deutsche Bank expected the three largest Chinese airlines to post a 10-17% passenger traffic year-on-year growth and 38-60% increase in profit in 1H15 due to strong tourism, discipline capacity expansion and low fuel price environment.

In addition, forward booking in the summer peak season is strong with stable air ticket pricing.

Deutsche Bank remained the three largest airlines at Buy, even though RMB depreciation could partly offset the upside from robust air traffic.

Top picks are AIR CHINA (00753.HK) and CHINA SOUTH AIR (01055.HK) with target prices of $10.3 and $8.5 respectively. CHINA EAST AIR (00670.HK)'s target price was set at $6.6.

Source: AAStocks Financial News

[winston]

Airlines JetBlue and Delta Air Lines rise 12% since July.

[winston]

Airline stocks march higher… Southwest Airlines, JetBlue, and Delta Air Lines are each up 100%-plus in the last two years.

[winston]

International Airlines: 1 to Buy, 2 to Sell

Three international airlines enter, but only one emerges victorious

By Lawrence Meyers

Source: Investor Place

http://investorplace.com/2015/09/intern ... fp88tIirIU

[winston]

not vested

A GOOD SIGN FOR THIS 'BOOM AND BUST' SECTOR

Airline stocks are breaking out of their downtrend from earlier this year... for proof, we consult today's chart of JetBlue.

Back in May, we showed you that the sector was breaking down. Because of their razor-thin profit margins, their exposure to wild swings in fuel costs, and the capital expenditures they require to keep business running, airlines typically make poor long-term investments.

But they can also be traded for big profits when they go through their big "boom" cycles.

They're in "boom" mode right now, and major flight-operator JetBlue is leading the way.

As you can see from the chart below, shares have soared nearly 40% over the past three months... and just touched a new 52-week high.

Meanwhile, fellow airlines Delta, American Airlines, and Southwest are also enjoying low oil prices.

Shares of these companies are each up double digits since July. For now, this volatile sector is booming...

Source: Daily Wealth