SA(601021) 华西证券·2025-05-09 11:32Investment Rating - The report maintains a "Buy" rating for the company, Spring Airlines, as it is expected to benefit from the future popularization of civil aviation travel in China [4]. Core Viewpoints - The company reported a revenue of 20 billion yuan in 2024, representing an 11.5% increase, and a net profit of 2.273 billion yuan, which is a slight increase of 0.69%. For Q1 2025, the revenue was 5.317 billion yuan, up by 2.88%, but the net profit decreased by 16.39% to 677 million yuan [2][4]. - The report highlights that the company is experiencing a one-time factor affecting its Q1 2025 performance, primarily due to maintenance issues with the leap-1a engines, which resulted in an average of 8 grounded aircraft [4][5]. - The company has a strong market position, with an increase in market share at major airports in Shanghai, attributed to a growing fleet and pilot training programs [5]. Financial Summary - The financial projections for 2025 have been adjusted, with expected revenue revised down from 27.074 billion yuan to 22.437 billion yuan, and earnings per share (EPS) adjusted from 4.59 yuan to 2.75 yuan. Projections for 2026 and 2027 are set at revenues of 26.740 billion yuan and 30.248 billion yuan, with EPS of 3.47 yuan and 4.12 yuan respectively [4][7]. - The report provides a detailed financial summary, indicating a projected revenue growth of 12.2% in 2025, with a net profit growth of 18.4% in 2026 and 26.0% in 2027 [7][18]. Operational Insights - The company has successfully increased its fleet size to 129 aircraft by the end of 2024, achieving a 6.6% growth compared to the previous year. Future fleet growth is planned to reach 134 aircraft in 2025 and 146 in 2026 [5][7]. - The average passenger kilometer yield has decreased by 6.5% year-on-year, reflecting the industry's trend of "price for volume" [5]. Market Position - As a leading low-cost airline in China, Spring Airlines is well-positioned to capitalize on the increasing demand for air travel as the market continues to recover and expand [4][5].