CSN(600029) 光大证券·2024-11-05 04:09Investment Rating - The report maintains an "Overweight" rating for both A-shares and H-shares of the company [4][7]. Core Views - The company reported a total revenue of 134.7 billion yuan for the first three quarters of 2024, a year-on-year increase of 12.7%, and a net profit attributable to shareholders of 1.965 billion yuan, up 49% year-on-year [1]. - In Q3 2024, the company achieved a revenue of 49.9 billion yuan, a year-on-year increase of 4.64% and a quarter-on-quarter increase of 24.09%, but the net profit decreased by 19.79% year-on-year [1][4]. - The report highlights a significant recovery in air travel demand, with RPK (Revenue Passenger Kilometers) increasing by 28% year-on-year for the first three quarters and 19% year-on-year in Q3 [2]. - The report notes a decline in passenger kilometer revenue, which fell by 11.7% year-on-year to 0.58 yuan/RPK for the first three quarters, primarily due to falling ticket prices [3]. - The report expresses optimism about the ongoing recovery in air travel demand and the potential for cost improvements, particularly with expected declines in oil prices [3]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved total revenue of 134.7 billion yuan, with a net profit of 1.965 billion yuan [1]. - In Q3 2024, the company reported a revenue of 49.9 billion yuan and a net profit of 4.21 billion yuan [1][4]. - The company’s RPK increased by 28% year-on-year for the first three quarters, with a 52% increase in international routes [2]. Cost Management - The company’s passenger kilometer cost decreased by 11.0% year-on-year to 0.52 yuan/RPK for the first three quarters, aided by lower oil prices and effective cost control [3]. - The report emphasizes the importance of ongoing cost management as the airline industry faces increased competition [3]. Market Outlook - The report anticipates continued recovery in air travel demand, supported by both domestic and international factors, with a focus on the gradual improvement of supply constraints [3]. - The report suggests that the airline's fleet expansion is slower than historical cycles, indicating a degree of supply rigidity in the medium term [3].