Spring Airlines (601021) Annual Report 2018 Review: 7% increase in revenue and 30% increase in revenue

Spring Airlines (601021) Annual Report 2018 Review: 7% increase in revenue and 30% increase in revenue

Core point of view The company achieved operating income of 131 in 2018.

100 million, the same increase of 19.

5%; realized net return / deduction of non-net profit is 15 respectively.

0 billion / 12.

200 million, an increase of 19.

1% / 12.

2%; fuel cost increased by 41.

6% impact, the company’s gross profit margin fell by 2.

5% to 9.

7%.

Although the cost has increased significantly, the company’s passenger-kilometer revenue has also increased by 7.

The 1% supplementary airline added 28% to 1.3 billion US dollars, and jointly pushed the company’s non-net profit to increase by 12%.

Q4 deducted unexpected 0.

500 million U.S. dollars, the highest net profit / deduction increased by 19% / 12%.

Q4 was affected by high oil price shocks driving up costs and macroeconomic pressure to significantly reduce fares.

54 ppm, gross profit margin fell sharply in ten years12.

4pcts to -11.

4%.

The company achieved operating income of 131 in 2018.

100 million yuan, an increase of 19.

5%; realized net return / deduction of non-net profit is 15 respectively.

0 billion / 12.

200 million, an increase of 19.

1% / 12.

2%; fuel cost increased by 41.

6% impact, the company’s gross profit margin fell by 2.

5% to 9.

7%; three fees increased by 14.

1% to 7.

40,000 yuan; other income (route subsidies) increased by 27.

9% to 13.

0 million yuan; government subsidies (unsustainable) increased by 64% to 3.

0 million yuan, non-economic gains and losses increased by 67% to 2.

800 million.

Overall capacity supply growth forecast, international capacity accelerated, and load factor decreased slightly.

ASK, the leading company in the report, increased by 14.

9%, a growth rate of 7 lower than 2017.

0, because the company introduced only 5 aircraft last year, lower than the original introduction plan of 7 aircraft.By region, the company’s domestic and international ASK increased by 14 respectively.

9% / 20.

1%, a growth rate of -17 from 2017.

8 pieces / + 11.

5

First-line airports have limited incremental capacity at all times to suppress the company’s domestic capacity deployment, while the company has put excess capacity into the international market and deployed outbound tourism around it.

The company’s domestic / international passenger load factor decreased by 1.

3/2.

2 pcts, among which the decline in domestic passenger seating rate was mainly due to the impact of macroeconomic conditions and new market development (Ningbo, Jieyang Airport, etc.), while the international passenger seating rate dropped significantly, mainly due to the Phuket shipwreck incident in the second half of last year, the company ThailandPassenger flow on the route has dropped significantly.

Passenger-kilometer revenue also increased by 7.

1%, the income continued to optimize, and the unit non-oil cost decreased by 1.

3%, cost control is still excellent.

Report on the comprehensive revenue management policies of domestic companies, implement market-based price adjustments on 14 domestic high-quality routes, and promote overall / domestic / international passenger-km revenue to increase by 7 respectively.

1% / 7.

8% / 5.

7%, the fare increase is significantly higher than the decline in passenger load factor, the company benefits significantly.

The average price of bribe fuel purchases rose by 25.

4% impact, the company’s unit fuel cost rose 21.

3%, but the unit fuel consumption decreased by 3.

2%.

At the same time, the company’s unit oil deduction cost decreased by 1.

3%, highlighting the company’s excellent cost control capabilities.

The airline added nearly 30% of the same increase, and the company’s capacity increased in summer and autumn.

In 2018, the company airlines added 27.

9% to 13.

0 ppm, airline subsidies accounted for 65% of the company’s net profit attributable to the mother, an increase of 4% over the same period of the previous year, mainly due to the company’s increased flight arrangements to domestic third- and fourth-tier cities and received more airline subsidies.

The 2019 summer and autumn flight schedule 重庆耍耍网 shows that the company’s daily average flight volume increased by 15 as well.

4%, an increase of 3 over the same period in 2017.

9pcts.

Considering that the 2 aircraft that the company gradually introduced last year were already in 2?
Released in March, supporting the company’s continuous growth in capacity release this year, especially the capacity of Thailand, Japan, South Korea and other international routes.

Risk factors: The macroeconomic downturn exceeded expectations; the significant devaluation of the RMB; the rapid rise in international oil prices.

Earnings forecasts, estimates and investment ratings.

Taking into account the speed deviation introduced by the subsequent company aircraft, and the company launched the release of the new A320 NEO model, the fuel efficiency is higher, we adjusted the EPS forecast for 2019/20 to 2 slightly.

00/2.

3成都桑拿网7 yuan (previous forecast was 1 for 2019/20.

94/2.

37 yuan), add EPS forecast 2 in 2021.

76 yuan, corresponding to 21/18/15 times the PE.

Maintain “Buy” rating.