China Civil Aviation Information Network (00696) fell by more than 5%. As of press release, it was down 5.46% to HK$9.35, with a turnover of HK$12.626 million.
The Zhitong Finance App learned that China Civil Aviation Information Network (00696) fell by more than 5%. As of press release, it was down 5.46% to HK$9.35, with a turnover of HK$126.326 million.
According to the news, China Merchants Securities pointed out that although the company's core business clearly recovered in 2023, cost side and credit impairment losses affected the company's net profit performance. 1) Costs and expenses: In 2023, the company's labor costs increased 14.4% year on year, mainly due to increased employee remuneration and insurance; technical support and maintenance costs increased 12.6% year on year, mainly due to increased business demand. 2) The company lost 300 million yuan in credit impairment in 2023, mainly due to bad accounts receivable losses.
Citi 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 the reversal of credit impairment losses may partially offset the impact. The bank maintained the “buy” rating of the China Civil Aviation Information Network and lowered its earnings estimates for the 2024-25 fiscal year by 8% and 9%, respectively, and the target price from HK$13.2 to HK$12.