[ET Net News Agency, 20 September 2018] Jefferies Research upgraded the Chinese
airlines as they are worst performing regional airlines from year-to-date high, and the
reseasrch house believes the negative drivers (depreciating RMB and higher oil price) are
in the price.
It noted that positive catalysts include: continuation of higher pax yields and lower
ex-fuel unit costs. Jefferies turned "overweight" the sector as core earnings bottom and
valuation is attractive.
Jefferies expects domestic ticket prices will continue to increase from (1) domestic
ticket price route reform, and (2) domestic fuel surcharge only imposed since 5 June.
It revised its ratings and target prices for the Chinese airlines as follows:
Name Target Price Rating
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Air China (00753) HK$8 from HK$8.3 Buy from Underperform
China East Air (00670) HK$5.4 Buy from Underperform
China South Air (01055) HK$5.8 from HK$6 Buy from Underperform
(KL)
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00670 CHINA EAST AIR
Nominal 
1.850 -0.050 (-2.632%) Others
20/09/2018 17:19
[I-bank focus]Jefferies upgrades Chinese airlines to "buy"
| Remark: | Real time quote last updated: 19/04/2024 18:00 |
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