Cathay Pacific (293.HK): 2018H result review: Maintain the TP and Rating August 24, 2018

Investment Summary

Sound demand rebound and mild cost growth make Cathay`s 2018H1 loss shrinking by near 90% yoy. We believe that the Company`s H2 result prospects are mixed with recovery of demand continually and the moderate cost growth. The positive factor is the gradually fading fuel hedging losses, and the negative factor is the shrink of share of profit from Air China due to the exchange losses. We temporarily maintain the financial forecast and target price unchanged at HK$14.3 for the Company, reaffirming the accumulate rating. (Closing price as at 22 August 2018)

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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