Shanghai Airport (600009): Non-aviation revenue and investment income increased significantly in line with expectations

Shanghai Airport (600009): Non-aviation revenue and investment income increased significantly in line with expectations

2019H1 results are in line with expectations Shanghai Airport announced the first half of 2019 results: operating income54.

6 ppm, an increase of 21 in ten years.

1%; net profit attributable to the parent company was 27 million, an increase of 33 year-on-year.

5%, corresponding to a profit of 1.

40 yuan; deduct non-recurring profit and loss to the net profit of the mother 26.

500 million US dollars, an annual increase of about 31%.

Operating income for the second quarter 26.

80,000 yuan, an annual increase of 20.

6%, net profit 合肥夜网 attributable to mother 13.

10,000 yuan, an increase of 30 in ten years.

4%, in line with market expectations, basically in line with our expectations.

The profit margin of main business keeps increasing5.

2 units.

In the first half of the year, operating income increased significantly.

1%, mainly from commercial catering revenue (about 27.)

(7 ‰, up 46%), of which tax-free income from T2 is 19.

2.7 billion (19Q1 is 10).

100 million, 19Q2 is 9.

1.7 billion), we estimate that Pudong Airport’s tax exemption in the first half of the year is about 7.5 billion.

Operating costs rose slightly 8.

6%, mainly from operation and maintenance costs (increase 1).

USD 5.7 billion, of which the increase in lease fees (connected transactions with group companies) recognized in the first half of the year1.

3.3 billion, 杭州桑拿网 an increase of about 38%.

Investment income increased by 34% each year, after deducting approximately 51 million new investment income from East China Kaiya during the period, the company’s other investment income increased by 21 in comparable terms.

5%, mainly because: 1) Deco Momentum’s net profit increased by 34%; 2) Free Trade Phase I Fund reduced losses by approximately 28 million yuan.

Development trend The duty-free shops in Shanghai are opening. We believe that the initial diversion impact will be limited.

Duty-free shops in Shanghai opened on August 23, with a business area of 874 square meters1.

Consider 1) At present, the city’s duty-free shops are not open to mainland consumers; 2) Fragrance is a standard product, and direct airport purchase is more convenient; 3) Airport customer acquisition costs are reduced, and we expect the city stores to have a limited impact on the diversion of Shanghai Airport in the beginning.
The progress of the satellite hall project has reached 95%, and it is expected to be put into production in the second half of the year.

As of mid-2019, the progress of the third phase of the project with the satellite hall as the main body has reached 95%, but the relevant capital expenditure commitments that have not yet occurred are still close to $ 8 billion.

The third phase of the project started at the end of 2015 and has a four-year construction period. It is expected to be put into production in the second half of this year.

Earnings forecast and forecast The current company expects to correspond to 2019/2020 29.


3 times P / E.

Maintain 2019 and 2020 profit forecast57.

9.5 billion and 64.

1.8 billion, maintain Outperform rating.

Due to the improved level of the sector, the target price is raised by 8% to RMB 90, corresponding to a 30 times price-earnings ratio in 2019 and 2 corresponding to current expectations.9% upside.

Risk Aviation demand was less than expected, and tax-exempt income was less than expected.