<Research Report>CICC Recommends Buying Chinese Airlines; Top Pick CHINA SOUTH AIR
CICC, in its report, commented that the valuation of Chinese airlines are now bottoming while the correlation of oil prices and share performance has been distorted significantly.
Should renminbi depreciates by 5% next year, their results can still grow by 30%.
Furthermore, as the Chinese New Year is approaching, there will be a great chance of seeing an increase in both the volume and turnover.
The broker recommended buying Chinese airlines. CHINA SOUTH AIR (01055.HK) was the top pick, with a rating of "Recommend". The target prices of its A/H-shares were RMB12.5/HK$8 respectively.
Meanwhile, CICC rated AIR CHINA (00753.HK) and TRAVELSKY TECH (00696.HK) at Recommend, with a target price of HK$9 and HK$17.
Source: AAStocks Financial News