DBS raises target price of Air China (00753) to HKD 5.4, rating "hold"

According to the financial news app, Zhidao Finance, DBS Bank has released a research report stating that due to the decrease in aviation fuel prices leading to a significant reduction in operating costs, coupled with a weak US dollar, it is expected that the profitability of Air China (00753, 601111.SH) will improve. However, with consumer sentiment in a downturn and increasing competition from high-speed rail, both domestic and international passenger transport revenues still face pressure. The bank has raised its profit forecasts for 2025 and 2026 by 37% and 71% respectively, and as a result has raised the H-share target price from 4.2 yuan to 5.4 Hong Kong dollars. Based on a 70% premium of the A-share over the H-share, the A-share target price has been raised from 6.7 yuan to 8.6 yuan, with a "hold" rating.