Morgan Stanley: Lowering target price for mainland airports, maintaining "In line with market" rating for Beijing Capital Airport (00694)

Morgan Stanley released a research report stating that Beijing Airport (00694) is rated "in line with the market" and the target price has been lowered by 27% to 2.2 Hong Kong dollars due to a downgrade in the forecast for commercial income prospects. The target price for mainland airport stocks has been significantly reduced, with Guangzhou Baiyun International Airport (600004.SH) being the preferred defensive choice. Compared to its peers, Guangzhou Baiyun International Airport has a smaller duty-free business scale, a unique duty-free product mix, and a higher dividend yield. The rating remains "neutral" with the target price lowered by 8.8% to 10.4 RMB. In terms of industry trends, with the increase in elderly and child travelers and changes in travel structures, it is expected that consumer duty-free spending during the summer peak period will further weaken. The rating for Shanghai International Airport (600009.SH) is maintained as "neutral" and the target price has been lowered by 10% to 35.9 RMB to reflect a conservative mid-term duty-free growth expectation.