Yamato: Reiterates "buy" rating on BEIJING AIRPORT (00694), target price lowered to 2.8 Hong Kong dollars.

15:40 23/09/2024

Yamato raises its forecast for per share earnings for Beijing Capital Airport in 2025-26 by 2-4%.

Daiwa released a research report stating that it reiterated a "buy" rating for BEIJING AIRPORT (00694) due to its potential deleveraging and the lowest valuation in the industry; the target price was lowered from 3 Hong Kong dollars to 2.8 Hong Kong dollars. Although a net loss is expected for 2024, the earnings per share forecast for 2025 to 2026 was raised by 2% to 4% to reflect a reduction in management fees. The report mentioned that Beijing Capital Airport has reduced advertising costs and international retail business management fees by 16% and 10% respectively. The management emphasized its commitment to reducing operating expenses with the support of the parent company, and the adjustments to these expenses will save the company 100 million RMB annually. The bank has a positive view on the management's active control of operating expenses and the company's potential deleveraging.

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