Shenzhen Airport (000089) 2018 Annual Report Comments: High Q4 Costs Achieved Slightly Lower-than-Expected International Passengers Maintained High Growth Rates Optimistic about the Company’s Development Prospects

Shenzhen Airport (000089) 2018 Annual Report Comments: High Q4 Costs Achieved Slightly Lower-than-Expected International Passengers Maintained High Growth Rates Optimistic about the Company’s Development Prospects

The company released its 2018 annual report: 35 operating income.

99 ppm, a ten-year increase of 8.

4%, net profit attributable to mother 6.

68 ppm, an increase of ten years.


Performance was slightly lower than expected.

Looking at quarters: Q1-4 revenue was 8 respectively.

49, 9.

1, 9 and 9.

400 million, and the profit is 1.

6, 2.


1 and 0.

9 ‰, the total operating cost of Q4 is high (1 qoq.

(700 million or 24%), the single-quarter profit replacement rate of 42% was the main reason for the lower-than-expected performance.

Operating costs increase by 12 per year.

95%, higher than revenue growth, resulting in slower growth in net profit.

1) Company operating costs26.

68 ppm, an increase of 12 in ten years.

95%, higher than revenue growth rate of 8.

4%, gross profit margin decreased by 3.

0 digits to 25.

9%, resulting in slower growth in net profit.

2) Operating cost increase 3.

0.6 billion, mainly from the total cost of the main aviation industry.

5.2 billion, an increase of 13 in ten years.

4% in increments of 2.

7.9 billion.

The statement notes show that the company’s total budget increased this year.

5.4 billion, an increase of 10 years.

0%, an increase of about 1.

100 million; transportation costs in the value-added aviation business were 78.32 million, an annual increase of 33.

5%, an increase of 19.65 million; the selling expenses decreased from 23.41 million to 8.46 million, a decrease of 15 million, mainly due to the increase in transportation passengers in 2018 and the incentives for wide-body aircraft investment in the calculation of operating costs.

The total incremental cost of the above items is about 1.

500 million, and other detailed costs such as marketing, maintenance, and security are expected to increase.

Business volume indicators are at the top, and internationalization is advancing rapidly.

The company completed 北京养生会所 a maximum of 35 landings.

60,000 sorties, passengers exploded 4,934.90,000 person-times, an increase of 4 per year.

6% and 8.

2%, passenger explosion growth ranked first in the top ten airports.

Initially, 15 new international passenger navigation cities were opened, of which 9 new intercontinental navigation points including London, Paris, and Zurich were newly opened, and 12 international passenger routes were encrypted.

International (including regional) passenger explosions reached 458.

40,000 person-times, an annual increase of 27.

4%, accounting for 7.

9 increased to 9.


The number of international passengers increased, and the number of newly opened intercontinental routes replaced the country’s number one. The number of international routes developed and the quality improved.

In the past 18 years, the company has completed 152 business outlets and brand upgrades.

The company’s air force announced that it would entrust the commercial resources of the T3 terminal to the Group’s wholly-owned subsidiary, Aviation City Operation Company, for operation management.

The commercial resource income is still owned by the company, and the company pays the entrusted management fee to the Aviation City Transport Management Company.

19-year guaranteed income 3.

4.4 billion yuan, and the basic entrusted management fee was 20.63 million yuan.

Commercial resources are entrusted to professional organizations to help the effective realization of the value of commercial resources.

The release in the summer and autumn season is obvious, and the international line is expected to maintain high growth.

In the summer and autumn of 19, the company’s growth rate was five years.

6%, of which the total international + regional growth rate is 21 at all times.

8%, a gradual growth rate since the 17th winter and spring, and the foundation for the company’s 19 years of continuous internationalization.

The company proposed in the annual report will accelerate the opening of intercontinental routes in key cities such as New York, San Francisco, and more than 8 new international routes in 2019, and strive to achieve 50 international routes as soon as possible.

Investment suggestions: 1) The company is in the period of potential release from the relocation of the international hub, the improvement of the competitive environment, the strategic period of overlapping of the three zones, and more importantly, the development of the main base airline company.

2) As a stable asset with long-term allocation value, Shenzhen-Hong Kong Stock Connect funds will quickly flow into Shenzhen Airport in 2019, and the shareholding ratio has increased from 3% at the beginning of the year to 9 at the end of March.


3) Taking into account the company’s subsequent commercial bidding progress and capital expenditure plan, we adjust our profit forecast and expect to achieve 8 in 2019-2021.

5.7 billion (previous forecast 9).

37, -8.

5%), 9.

96 (Origin 11.

13, -10.

5%) and 10.

400 million, corresponding to PE is 24, 21 and 20 times.

As the strategic target of the traffic moat, the airport is optimistic that the company is in the period of potential release, continues to promote internationalization, and new contracts for exit tax exemption may constitute a catalyst, and it is recommended to continue to pay attention to the company’s development.

Risk warning: The economy is down, the internationalization strategy is less than expected, and the non-aviation tendering is less than expected.