Bank of America Securities: Reaffirming the "underperform" rating for BEIJING AIRPORT (00694) with a target price increased to 2.3 Hong Kong dollars.

Bank of America Securities released a research report stating that the target price of BEIJING AIRPORT (00694) has been raised from HKD 2.2 to HKD 2.3, and the profit forecast has been slightly increased (averaging about 70 million RMB). However, due to continued weakness in international tourism and duty-free sales, the "underperforming the market" rating for Capital Airport was reiterated. The company recently announced a supplemental agreement regarding the management of advertising and international retail business. According to the report, under the supplemental agreement, the commission rate for the international retail business by the Trade Company (a wholly-owned subsidiary of Capital Airport's parent company) has been reduced from 20% to 10%, and the commission rate for the advertising business by the Media Company (a wholly-owned subsidiary of Capital Airport's parent company) has been reduced from 22% to 16%. These arrangements are effective retroactively from January 1 of this year and will last until 2024-2026. The bank estimates that Capital Airport can save approximately 100 million RMB in pre-tax expenses each year during the 2024-2026 period.