Spring Airlines (601021) semi-annual report comment: Cost control is excellent, load factor returns to 90%

Spring Airlines (601021) semi-annual report comment: Cost control is excellent, load factor returns to 90%

Key points of investment: The company released the 2019 semi-annual report,武汉夜生活网 reporting that the two companies realized operating income71.

4.9 billion, an annual increase of 12.

90%; realize net profit attributable to shareholders of listed companies.

5.4 billion, an annual increase of 17.


Ping An’s viewpoint: Cost control is excellent, and new fuel efficiency is greatly improved: In the first half of 2019, the company replaced aviation fuel and the cost of seat kilometers in addition to take-off and landing fees decreased by 0.

6%, the unit selling expenses decrease by 21 every year.

7%, unit management expenses fall by 1 every year.

5%, excellent cost control is the leader in net profit growth over revenue growth.

In addition, the company’s existing 6 A320NEO aircraft can reduce the unit fuel consumption by 15% compared with the previous generation A320 inverter. Through this 杭州桑拿 alternative conversion, the company’s average unit fuel consumption can help to further reduce.

Passenger load factor returned to 90%: the company’s RPK increased by 12 in the first half of 2019.

2%, asking price increased by 9 in the same period.

3%, the increase in capacity was significantly higher than the increase in capacity. Affected by this, the company’s load factor increased significantly, the company’s average passenger replacement in the first half of 2019 was 91.

70%, compared with 89 in the same period in 2018.

31%, up 2.

39 averages, back to more than 90%.

Investment suggestion: In the current economic environment, the personal travel passenger group has become the main force for the growth of air transport demand. We believe that the domestic-scale aviation market share continues to increase, and the market base for Spring Airlines to maintain rapid growth still exists.

We maintain the United Nations forecast and expect the company’s net profit attributable to the parent company to be 17-20 in 2019-2021.

3.5 billion, 21.

7 billion, 26.

52 trillion, EPS is expected to be 1 in 2019-2021.

89 yuan, 2.

37 yuan, 2.

89 yuan, corresponding PE is 22.

6, 18.

1 and 14.

Maintain the “Recommended” level.

Risk reminders: 1) policy risks, uncertainty in policy adjustments will bring policy risks to its development prospects; 2) risks such as oil prices, exchange rates, rising oil prices, and currency value decreases will all lead to profitable earnings; 3)Security risks. A security incident may deprive consumers of their confidence, which will lead to a significant decline in tandem revenue.