CICC: Raises target price of CHINA EAST AIR (00670) to 5.5 Hong Kong dollars, maintains "outperform" rating.

Zhongjin released a research report stating that due to the increase in profit forecast for 2026 and the deepening of the cycle, the valuation of CHINA EAST AIR (600115.SH,00670) is expected to increase. They switched the valuation to 2026 and raised the target price of East Air A shares by 30% to 6.5 yuan, corresponding to a 24.4 times 2026 P/E ratio; raised the target price of East Air H shares by 56.7% to 5.5 Hong Kong dollars, corresponding to an 18.7 times 2026 P/E ratio, maintaining an outperform industry rating. East Air's third quarter revenue was 39.59 billion yuan, a year-on-year increase of 3.1%; net profit was 3.53 billion yuan, corresponding to earnings per share of 0.16 yuan, a year-on-year increase of 34.4%; performance basically met the expectations of the bank. The report pointed out that the decrease in oil prices led to a decrease in unit operating costs. In the third quarter, the company's unit operating costs decreased by 4.3% year-on-year, mainly due to a 11.2% decrease in domestic oil prices. Due to industry ticket prices in the first three quarters of 2025 being lower than expected by the bank, they lowered East Air's A/H share net profit forecast for 2025 by 37.5% to 1.49 billion yuan. Due to the improved ticket price expectations, they raised East Air's A/H share net profit forecast for 2026 by 8.3% to 5.93 billion yuan.