[ET Net News Agency, 23 April 2018] HSBC Global Research cut its target price for Air
China (00753) to HK$7.5 from HK$8.7, and reiterated its "reduce" rating given a
challenging outlook for passenger yields and load factors in 2018.
The research house cut its 2018-20 earnings forecasts by 35-43% to reflect weaker
international passenger yields as Air China has guided for aggressively expanding its
international ASK by 15% in 2018 amidst heightened competition from the other big two
Chinese airlines and ambitions of the smaller airlines.
HSBC also increased its operating cost assumptions and interest costs to reflect rising
interest on floating rate loans. Its revised forecasts still imply a sharp 17% increase in
2018 recurring profit versus the weaker results of 2017, mainly due to the turnaround of
its associate Cathay Pacific (00293) to profits in 2018 from losses. (KL)
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00753 AIR CHINA
Nominal 
3.180 +0.150 (+4.950%) Others
23/04/2018 11:33
[I-bank focus]HSBC cuts Air China (00753) to HK$7.5
| Remark: | Real time quote last updated: 24/09/2024 17:59 |
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