Morgan Stanley: "Overweight" rating on Air China Limited (00753) with a target price of HK$7.61.

Morgan Stanley has released a research report stating that it has given Air China Limited (00753) a "overweight" rating with a target price of 7.61 Hong Kong dollars. The bank believes that Air China's performance is in line with expectations, estimating that the Chinese aviation industry was close to breaking even last year, with gross profit expected to further improve in the next two years. Air China Limited has issued a profit warning, expecting a net loss of 160 to 240 million Chinese yuan last year, slightly lower than the bank's expected loss of 489 million Chinese yuan. Excluding the impact of foreign exchange, the bank expects Air China to achieve a profit last year, with a net loss of 700 to 800 million Chinese yuan in the fourth quarter, significantly narrowing from a net loss of 2.4 billion Chinese yuan in the fourth quarter of 2023, mainly due to improved utilization rates and low oil prices.