Air China (601111) Quarterly Comment: Significant Cost Savings Hedging Revenue Gradually Increases Quarterly Quarterly Results 3.


Air China Discloses Third Quarter Report Air China discloses the third quarter report. The company achieved operating income of 377 in the third quarter.

600 million, down 2 every year.

3%, achieving a net profit of 36.

200 million, an annual increase of 4.

4%; operating income of 杭州桑拿网 1030 in the first three quarters.

800 million, an increase of 0 in ten years.

2%, achieving net profit of 67%.

600 million, down 2 every year.


  The traffic volume increased slowly, and the freight rate decreased. The revenue in the third quarter fluctuated slightly. The company’s operation and investment growth rate was stable, and the third quarter was ASK740.

200 million, an increase of 5 previously.

4%, the growth rate has not changed much from the previous two quarters; RPK608.

0 billion, an increase of 6 previously.

0%; load factor 82.

17%, a year rose 0.

47pct, of which the domestic line load factor fell more than 0.

02pct, the international line goes up by 1.

83pct, the regional line dropped 7.

62 points.

Affected by the macroeconomic bottom and the end of the third quarter to protect the 70th anniversary of the founding of the People ‘s Republic of China ‘s business demand from being restrained to a certain extent, the company ‘s freight level has declined.

In addition, due to the problem of revenue base caused by the division of cargo airlines, the company’s third-quarter revenue showed a slight shift.

  Significant cost savings. The intensity of unit non-oil cost savings increased to a low level in the third quarter. The ex-factory price of aviation kerosene dropped by about 10%. The company’s aviation fuel cost is expected to be just over $ 9 billion, and revenue has declined. In terms of non-oil costs,The company’s unit ASK non-oil cost savings have increased, and we estimate that the savings may reach nearly 7%, which is significantly greater than the first and second quarter savings of about 4%.

  The level of sales management expenses was optimized, and the deduction of foreign exchange performance increased by about 5%. The company’s sales expenses in the third quarter4.

18%, a decline of 0 per year.

19 points, management (including research and development) expense ratio.

08%, a decrease of 0 per year.

07 points.

Due to the exchange rate impairment of nearly 3% in the third quarter, the company incurred a certain exchange loss, and the impact of the increase in the consolidation index of overlapping operating leases, we calculated the financial deduction rate 3.

91%, an increase of 1 per year.

57%, a slight increase from the second quarter.

59% level.

Excluding the impact of foreign exchange gains and losses, we estimate that the company’s third-quarter profit increased significantly by about 5%.

  Investment suggestion: During the regular schedule of the winter and spring sailing season in 2019, the value will increase by half a year.

Landing at a 7% growth rate, combined with the B737MAX grounding continuity and R5 limiting pilot flight hours, combined compression from multiple dimensions to provide free space.

Taking into account the expected recovery in demand bottoming out and the low base of freight rates since the fourth quarter of last year, we believe that freight rates are expected to improve significantly in the fourth quarter and 2020.

Air China is the only airborne flight in a developing country. It controls Beijing Capital Airport and has a geographical advantage. It is more attractive to business and business people. It is expected that it will take the lead in the two competitions in the Beijing 杭州桑拿网 market.The profit forecast is not revised for the time being, and the net profit attributable to mothers is expected to be 80 in 2019-2021.

300 million, 103.

2 billion, 115.

4 billion, an increase of 9 each year.

4%, 28.

6%, 11.

8%, maintain “Buy” rating.

  Risk Warning: The macro economy exceeds expectations, oil prices continue to rise, exchange rates depreciate, and security accidents