乐博现金网登录66866银河国际Yum Cha饮茶

乐博现金网登录66866银河国际Yum Cha饮茶

乐博现金网登录66866,summer peak season, we look into China’s aviation sector. The latest
industry datafrom the Civil Aviation Administration of China (CAAC) and
individual airline companiesshows accelerating passenger traffic growth
and an improving passenger loadfactor, which should help improve
passenger yield and airline companies’ profitabilityin 2017-2018E. We
selected China Southern Airlines to see how much oil price andFX changes
would impact its earnings. The Company is ranked the largest
airlinecompany in China’s aviation sector in terms of fleet size and
passenger traffic. It hasthe largest market share on domestic routes.
Hence, its earnings are the most sensitiveto 1) rising peak season
passenger traffic, and 2) movement in oil prices and FX.

    We found that if we assume RMB to be relatively stable this year,
the implied jet fuelprice based on market consensus suggests limited
earnings upside for 2017. Basedon consensus earnings estimates, the
stock currently trades at 1.1x 2017E PBR, onestandard deviation above
its historical average forward PBR of 0.9x. We believe thecurrent
valuation is too rich, especially considering the limited upside risk to
its 2017Eearnings.

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