Jinwu Financial News | According to the First Shanghai Development Research Report, China Civil Aviation Information Network (00696) had revenue of 6.98 billion yuan (YoY +34%) in 23, and net profit attributable to shareholders of the parent company of 1,399 billion yuan (YoY +123%), which is in line with the company's previous profit forecast (net profit of about 1.25 to 1.45 billion yuan is expected to be recorded in 23). The company's profit per share was RMB 0.48. The board of directors recommended a final dividend of 0.16 yuan to be paid in cash for the year 23, with a dividend payout ratio of 33% for the full year, compared to 25% for the same period last year. The company's performance is in line with expectations, and dividends need to be improved.
According to the bank, in January 2024, the Civil Aviation Administration of China stated that it will strive to complete the passenger traffic volume of 690 million passengers in 2024, and the international passenger transport market will recover at an accelerated pace, and is expected to return to 80% before the epidemic by the end of 2024. As a result, the company has built a complete aviation tourism information technology service industry chain for more than 40 years. The bank expects the company's performance to grow steadily in line with the rapid development of China's civil aviation industry in the future. Considering the generally low valuation level of Hong Kong stocks and the fact that although the company had sufficient cash on its accounts, the low dividend payout ratio failed to improve shareholders' return. The PE valuation was 18 times the 24-year profit, and the target price was lowered to HK$12. There was 21% room for increase from the previous closing price, and the purchase rating was maintained.