Citi cut China Civil Aviation Information Network (00696)'s earnings estimates for the 2024-25 fiscal year by 8% and 9%, respectively.
The Zhitong Finance App learned that Citi released a research report stating that it maintained the “buy” rating of the China Civil Aviation Information Network (00696), lowered the profit estimates for the 2024-25 fiscal year by 8% and 9%, respectively, and lowered the target price from HK$13.2 to HK$12.
According to the report, the increase in the company's third-party services and mobile phone promotion expenses led to a surge in commission fees in the second half of last year. Credit impairment losses mainly came from customers with long accounts receivable or poor financial conditions. The bank expects that the slow recovery of the Group's system integration revenue and the decline in data network revenue may slow down its revenue growth, but the slowdown in cost growth and reversal of credit impairment losses may partially offset the impact.