Jinwu Financial News | China Civil Aviation Information Network (00696) ended the previous two-day continuous rise. Today, it returned 5.26% to HK$9.37, with a turnover of HK$10.7636 million.
According to the news, Citi said that the increase in third-party services and mobile phone promotion fees for China's civil aviation information network 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 the reversal of credit impairment losses may partially offset the impact. The bank lowered its earnings estimates for the 2024-25 fiscal year by 8% and 9%, respectively, and lowered the target price from HK$13.2 to HK$12. Maintain a “buy” rating.
According to China Merchants Securities, benefiting from the recovery of the aviation market, the company's performance recovered year-on-year in 2023. According to the bank, although the company's core business clearly recovered in 2023, cost side and credit impairment losses affected the company's net profit performance. According to the bank's profit forecast, the company's current stock price corresponding to the 2024-26 price-earnings ratio is 14/12/11 times, respectively, maintaining a “highly recommended” rating.