Daiwa: Raises China Civil Aviation Information Network (00696.HK) target price to 10.2 Hong Kong dollars, rating "reduce"

According to the Zhitong Finance and Economics APP, Morgan Stanley released a research report stating that it has lowered its EBITDA forecast for China Civil Aviation Information Network (00696.HK) from 2021 to 2027 by 6% to 7%, based on slower than expected revenue recognition for the SI business in the first half of the year, lower handling volume for foreign airlines, and reduced depreciation and amortization expenses. The bank roughly maintains the company's net profit forecast for this year, based on more credit impairment reversals and lower depreciation and amortization. However, the net profit forecast for next year and the following year has been lowered by 1% and 2%, respectively. The bank has raised its target price for China Civil Aviation Information Network from HK$9.9 to HK$10.2, with the assumption that the RMB exchange rate will appreciate by 1.5% against the Hong Kong dollar. The bank continues to maintain a "reduce" rating on the stock.