Shenzhen Airport (000089): Non-aviation business drags down third-quarter performance and satellite hall construction steadily advances

Shenzhen Airport (000089): Non-aviation business drags down third-quarter performance and satellite hall construction steadily advances

Earnings in the third quarter of 2019 were lower than we expected in the third quarter of 2019 results announced by Shenzhen Airport: operating income9.

5.3 billion, a five-year growth of 5.

4%; net profit attributable to parent company1.

72 ppm, a decrease of 16 per year.

6%, corresponding to a relative profit of 0.

08 yuan, deducting non-net profit 1.

700 million, down 13 each year.

5% (VS.

In the first half of the year, non-net profit was increased by 9 in advance.

7%).

In the first three quarters of 2019, the company’s revenue increased by ten years.

5%, net profit drops by 16 every year.

7%, performance was lower 杭州桑拿 than our expectations.

Development Trends Operating income is growing faster than production each year, and we estimate that it is mainly dragged down by the advertising business.

Under the dual influence of the low base in the third quarter of last year and the obstruction of the operation of Hong Kong Airport in the third quarter of each year, the company’s take-off and landing times increased in the third quarter.

5%, the number of passenger explosions increased by 10% each year, but the company’s operating income increased by only 5 in the third quarter.

At 4%, we estimate that the increase in revenue from the advertising business of the airport has been dragged down due to the accelerated economic growth.

The growth rate of operating costs is still high. We estimate that this is mainly due to the rigid increase in labor costs.

The company’s operating costs increased by 14 in the third quarter.

7% (VS second quarter quarter growth of 13.

8%), which continued the growth trend in the first half of the year, and the profit margin of the main business decreased by 6 percentage points, ranking 2nd place instead of 22%. We estimate that this may be due to the increase in labor costs due to rigidity.

The construction of the satellite hall has progressed steadily.

According to the plan, the satellite hall project budget is 6.8 billion yuan, with a total construction area of 23.

50,000 square meters, with a designed annual passenger explosion of 22 million. It will mainly serve domestic passengers in the future and is expected to be completed by the end of 2021.

In the third quarter, the company’s construction in progress from the beginning of the 9th.

500 million, significantly increased to 20 at the end of the period.

200 million, it is estimated that the satellite hall project is advancing steadily.

Earnings Forecasts and Estimates Due to performance expectations, we lower our net profit for 2019/202011.

2% / 13.

4% to 6.

27/7.

8.6 billion yuan.

The company’s current consensus corresponds to 34 in 2019/2020.

0x / 27.

1x price-earnings ratio.

Maintain Neutral rating and 9.

Target price of 40 yuan, corresponding to 30.

7x 2019 P / E ratio and 24.5 times 2020 price-earnings ratio, 9 compared with the same period last year.

5% downside space.

Risk Aviation demand is lower than expected; capital expenditure exceeds expectations.