SIA (600009.CH): The duty-free bidding is about to start! October 4, 2017 477

– Jump of 21% in 2017H1 Earnings

– Aviation business revenue increased by 3.5% YoY

– Soar of 26% in non-aeronautical business

– As the duty-free bidding is about to start, the value of airline hub is stable

Investment Thesis

We increase the Company`s EBITDA per share to RMB2.17 in 2017 and RMB2.6 in 2018, respectively, with the estimation of a 20/17x multiple during the two years. The target price is increased to RMB44.35 and the “Accumulate” rating is maintained.

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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