HomeChina Stock News China Southern rated top choice among airline stocks at Everbright Securities
China Southern rated top choice among airline stocks at Everbright Securities
Written by Administrator
Monday, 10 December 2007
BEIJING, Dec. 10 (InfoChina) – China Everbright Securities says in a report released Monday that it regards China Southern Airlines (ZNH.NYSE; 1055.HK; 600029.SH) as the top choice for investment in 2008 among Chinese airline stocks, and gives a “Buy” rating.
China Everbright Securities forecasts EPS of China Southern Airlines at 0.52, 1.021 and 1.268 yuan per share for 2007, 2008 and 2009 respectively.
According to China Everbright Securities, China Southern Airlines’ main operating business would start to yield profit in 2007.
This upbeat forecast is backed by expected over 76 percent occupied seat rate of China Southern Airlines in 2008, which would lead to tighter control over ticket prices.
The continuing appreciation of RMB will helps reduce its cost of external financing and U.S. dollars-denominated debts.
But the broker also warned risks of substantial oil price hikes and air disasters. (Edited by Liu Yanan; e-mail:
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