On the premise of the improvement of the supply and demand pattern, we expressed cautious optimism for the promotion of the industry next year. In August, CSA raised Hshares
and introduced U.S. airline strategy investors, which was expected to help to develop the company`s Euro-American flight. At the same time, the company`s project of raising RMB13.3 billion is moving forward, which will further increase assets when finished. In accordance with the latest data, we adjust the estimate of the Company`s EPS to RMB0.71/0.86 in 2017 and 2018. The target price is HK$8.45, equivalent to 10/8.3x and 1.4/1.25x estimated P/E ratio and P/B ratio, respectively, in 2017 and 2018. The “accumulate” rating is given.