Shanghai Airport (600009): The main business has good growth performance and the growth trend is determined
Investment points The main business has good growth, and the performance growth trend is determined. In the first half of 2019, the company achieved operating income of 54.
55 ppm, an increase of 21 in ten years.
11%, achieving net profit attributable to shareholders of listed companies.
00 ppm, an increase of 33 in ten years.
54%, realized profit1.
The company’s aviation business grew steadily, its non-aerospace business increased significantly, investment income continued to be stable, and its performance showed a good growth trend.
The third phase of the expansion project is about to be put into use, and the shortage of resources is still the norm. In the first half of 2019, Pudong Airport completed 255,576 aircraft takeoffs and landings, a continuous increase1.
92% of the passengers were tungsten 3,821.
970,000 person-times, an increase of 4 per year.
16%, cargo and horror 170.
19 inches, 8 per year.
The third phase of the expansion project will be put into use in the second half of 2019, which can improve the ground processing capacity. At the same time, the air traffic management system will promote normalization of the flight through various measures such as refined airspace management. The existing capabilities of Pudong Airport basically meet the needs.Increasing capacity also requires the commissioning of new facilities.
In the future development, the civil aviation industry will continue to maintain a good economic situation, while Pudong Airport, the core hub airport, shows a high level of operation and a shortage of resources.
The commercial value brought by traffic, considerable profits of non-aviation business Non-aviation business has become an important source of profit improvement, and the opening of the marketization process of non-aviation business pricing will open up a larger market space for the improvement of airport non-aviation business profitability.
In the first half of 2019, the company realized non-aeronautical 成都桑拿网 revenue34.
300 million, accounting for 62.
90%, an annual increase of 35%, of which commercial catering revenue is 27.
700 million, accounting for 50.
85%, an increase of 46% per year. The implementation of the “Duty-free Shop Project Operating Right Transfer Contract” as scheduled has effectively promoted the airport’s non-airline business revenue growth, and the non-airline business revenue share has continued to increase.
With the further construction of Shanghai Pudong International Airport’s international hub and the increase in the proportion of international and transit passengers, the non-airline business will achieve better development and continue to increase its contribution to the company’s earnings.
Consolidating the value of the hub, the commercial profit-making company as an international aviation hub has long-term development space and good growth potential.
Although the introduction of new facilities has brought increased costs, the increased profitability of non-aeronautical business covers increased costs, so the company’s performance has continued to rise.
It is expected that from 2018 to 2020, the company will achieve an EPS of 2 respectively.
42 yuan, 2.
51 yuan and 2.
82 yuan, PE is 36x, 35x, 31x, and enter a better profitable state after 2021.
Taking into account the high-quality attributes of the company’s assets, the company can achieve a large moat, the aeronautical business shows continued stability, and the non-aeronautical business has good growth and profitability, maintaining the company’s “overweight” investment rating.
Risk reminder: Macroeconomic growth is faster than expected, unexpected events occur in civil aviation, passenger consumption demand is lower than expected, and policy risks.