[ET Net News Agency, 25 September 2019] J.P. Morgan lowered its target price for China
Eastern Airlines (CEA)(00670) to HK$4.6 from HK$4.7 and maintained its "overweight"
rating.
The research house said CEA has the highest quality domestic route network which enables
it to continue raising average pax yield under a deregulated domestic airfares
environment, but this may be balanced by higher capacity growth on lower-tier routes with
weaker performance in FY2019.
Its planned equity placement later this year would also further boost its book value per
share, JPM noted. Trading at 0.8x 2019 P/B currently, which is below its historical mean,
JPM finds CEA undervalued, as the research house expects its ROE (Return on equity) to be
above its historical mean ROE in the coming years. (KL)
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00670 CHINA EAST AIR
Nominal 
2.010 +0.030 (+1.515%) Others
25/09/2019 10:13
{I-bank focus}JPM cuts China Eastern Airlines to HK$4.6
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