Spring Airlines (601021) Annual Report Comments: Better-than-expected performance and significant cost management effect

Spring Airlines (601021) Annual Report Comments: Better-than-expected performance and significant cost management effect

Event: The company released its 2018 佛山桑拿网 annual report and achieved operating income of 131 in 2018.

1 ‰, +19 a year.

5%; net profit attributable to mother 15.

03 trillion, +19 a year.


Of which 18Q4 revenue was 29.

3 ‰, +15 per year.

2%; net profit attributable to mother 0.

910,000 yuan, +22 for ten years.


Supply growth has been sharp in 18 years, and fleet expansion will accelerate in 19-20.

2018 company ASK ten years +16.

7% (domestic +14.

9%, international +20.

2%), with a growth rate of -7 pct for ten years; RPK of +14 for half a year.

7% (domestic +13.

3%, international +17.

2%), the growth rate is -7 per second.

5pct, the growth rate of supply and demand has increased, but it is still higher than the industry average and maintains rapid growth.

The company introduced 5 aircrafts in 18 years, the company’s fleet reached 81 at the end of the year, and the planned net transfers in 19 and 20 were 9, 10, respectively, showing that the company will accelerate expansion and actively improve the network layout.

The effectiveness of revenue management has been significant, with supplementary income continuing to grow rapidly.

In 2018, the company continued to improve its revenue management policy and benefited from the reform of the civil aviation budget. The domestic airline’s revenue level has been effectively improved, so that the passenger kilometer revenue has reached zero.

37 yuan, an annual increase of 7.

06%, load factor 89%, only down 1.

55pct, of which domestic passenger passenger revenue increased by 7.

76%, load factor decreased by 1.

26pct, significant increase in revenue.

In 2018, the company’s other income was 1.3 billion, an annual increase of 27.

9%, of which airline subsidies 10.

3 ‰, +22 a year.

4%, the company in the process of actively developing new bases and new routes to obtain supplementary income to ensure profit growth.

The unit cost has previously fallen, and the “two lows” cost has increased profits.

In 2018, the company’s average purchase price of jet fuel increased by 24 year-on-year.

6%, the unit fuel cost increased by 21.

3%, unit fuel consumption fell by ten in ten years.

2%, the effect of refined fuel-saving management is gradually released; the benefit aircraft shortens the hour interval and increases by 2.

0%, the unit non-oil cost in 18 years will decrease by 1 every year.

3%, significant cost control effect.In 18 years, the company’s unit sales expenses and management expenses decreased by 25.

4%, 7.

At 6%, companies with outstanding cost control capabilities are leading the industry in the growth rate of net profit.

Investment suggestion: As a national standard aviation leader, the company has refined operations and has long-term differentiated competitiveness.

The company’s EPS for 2019-2021 is expected to be 2.

04, 2.

68, 3.

06 yuan, corresponding PE is 19x, 14x, 13x, maintaining the “buy” level.

Risk warning: The macro economy has grown sharply, crude oil prices have increased sharply, and exchange rate fluctuations have intensified.