Air China (753.HK) April 11, 2019 309

PSR Recommendation: ACCUMULATE Status: Upgraded
Target Price: HKDHKD10.24

Investment Summary
The 18Q4 Result Turns from Loss and the Year-round Net Profit Is Basically Flat Which
Is Better than Expected
Air China reported revenues of RMB136.77 billion in 2018, up by 12.7% yoy. The net profit
attributable to parent company was RMB7.34 billion, up by 1.3% yoy. Its EPS was RMB0.53
basically, down by 1.85% yoy due to the dilution of A share`s private placement. Dividend
per share was RMB0.1033, with the dividend rate of 19.5%.
The result of Air China in the 2018Q4 was better than expected, turning from a loss of
RMB1.04 billion in the same period last year to a profit of RMB399 million. It was the main
force to stop the downs and maintain the flat in the whole year (the net profit of the
company in the first three quarters fell 16% yoy). We believe the main reason making the
fourth-quarter result better than expected are:

About the author

Profile photo of Zhang Jing

Zhang Jing
Phillip Securities (HK)

Bachelor Degree in Tongji University of Engineering; Master Degree in East China Normal University of finance. Currently covering the automobile and air sectors. She has years of experience in investment research and is good at combining analysis for the companies with industry prospects.

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