Investment Rating - The report maintains a "Buy" rating for China TravelSky Holding Company (0696 HK) [2] Core Views - Domestic civil aviation passenger market continues steady recovery, benefiting from intelligent transformation of aviation industry [1] - Company revenue reached RMB 13 67 billion in H1 2024, up 13 9% YoY [2] - Net profit attributable to parent company reached RMB 9 69 billion, with current stock price at HK$9 69 [2] - All business segments achieved YoY revenue growth in H1 2024 [2] Business Performance - Airline IT services revenue increased 24 0% YoY to RMB 22 65 billion due to higher system processing volume [2] - Settlement and clearing revenue grew 19 8% YoY to RMB 6 80 billion [2] - System integration service revenue surged 111 9% YoY to RMB 2 16 billion [2] - Data network revenue rose 7 3% YoY, while other business revenue declined 15 1% [2] Market Trends - Domestic passenger scale showed steady growth, exceeding 2019 levels [2] - International civil aviation market showed stable recovery [2] - ETD system processed 3 52 billion passenger trips in H1 2024, up 24 0% YoY [2] - Domestic segment processing volume increased 15 8% YoY, while international segment surged 193 4% [2] Financial Projections - 2024E revenue forecast at RMB 8 325 billion, with 19 2% YoY growth [3] - 2024E net profit forecast at RMB 1 954 billion, with EPS of RMB 0 67 [3] - 2025E revenue expected to reach RMB 10 509 billion, with 12 1% YoY growth [3] - 2025E net profit projected at RMB 2 491 billion, with EPS of RMB 0 85 [3] Balance Sheet - Total assets expected to grow from RMB 25 236 billion in 2022 to RMB 32 970 billion in 2026E [4] - Cash and short-term investments projected to increase from RMB 7 577 billion in 2022 to RMB 14 660 billion in 2026E [4] - Shareholders' equity forecast to rise from RMB 19 741 billion in 2022 to RMB 27 017 billion in 2026E [4] Cash Flow - Operating cash flow projected to increase from RMB 1 336 billion in 2022 to RMB 3 513 billion in 2026E [5] - Free cash flow expected to grow from RMB 1 678 billion in 2022 to RMB 1 746 billion in 2026E [5] - Net cash flow forecast to rise from RMB 1 136 billion in 2022 to RMB 2 221 billion in 2026E [5]
中国民航信息网络：2024年中报点评：国内民航客运市场持续稳步复苏，受益于民航业智能化转型