Capital airport lost more than 2 billion in 2021. Securities companies are optimistic about the long-term investment value of hub airport

Following the advance losses of Shanghai International Airport Co.Ltd(600009) , Guangzhou Baiyun International Airport Company Limited(600004) , Shenzhen Airport Co.Ltd(000089) , the capital airport was not spared.

Beijing Capital Airport Co., Ltd. (00694. HK) announced on February 22 that it is expected that the company will record a net loss of about 2.09 billion yuan to about 2.15 billion yuan for the year ended December 31, 2021, and an audited net loss of about 2.035 billion yuan for the year ended December 31, 2020.

The board of Directors believes that the expected net loss last year is mainly due to the continuous impact of covid-19 pneumonia epidemic, and the recovery of passenger throughput, aircraft take-off and landing sorties and cargo and mail throughput of Beijing Capital International Airport in this year, resulting in the continuous pressure on the company’s operating performance. Affected by the epidemic, the listed airports in China’s core cities suffered comprehensive losses last year.

listed airports continue to suffer losses

At present, the main listed companies in China’s aviation airport industry include Guangzhou Baiyun International Airport Company Limited(600004) (600004), Shenzhen Airport Co.Ltd(000089) (000089), capital airport, Shanghai International Airport Co.Ltd(600009) (600009), Xiamen International Airport Co.Ltd(600897) (600897).

The covid-19 epidemic, which lasted for two years, has greatly reduced the volume of civil aviation passenger transport. Under the business situation that the passenger transport volume of China’s line fluctuates greatly and the international line has not been opened, the operation and management of listed airports is under pressure, and the performance of listed airports was collectively pre lost last year.

According to the performance forecast released by Guangzhou Baiyun International Airport Company Limited(600004) , the expected net profit in 2021 is about -465 million yuan to -381 million yuan, and the amount of loss has expanded. Reasons for performance changes: first, non recurring profits and losses of 403 million yuan were generated due to equity disposal of Guangzhou Baiyun International Logistics Co., Ltd. in the same period of last year; Second, due to the continuous impact of the epidemic in 2021, the production and operation data decreased slightly compared with the same period of last year; Third, with the normalization of epidemic prevention and control, policies such as centralized residence of high-risk posts have increased the cost of epidemic prevention.

Shenzhen Airport Co.Ltd(000089) announced that the expected net profit in 2021 is about – 50.8 million yuan to – 25.5 million yuan, with a loss in performance. During the reporting period, the company affected by the epidemic of New Coronavirus pneumonia, passenger throughput and take-off and landing sorties decreased, the epidemic prevention related expenses more, resulting in year-on-year decline in operating performance.

Shanghai International Airport Co.Ltd(600009) it is estimated that there will be further losses in 2021, with a net loss of 1.64 billion yuan to 1.78 billion yuan. As for the main reasons for the loss in advance, Shanghai International Airport Co.Ltd(600009) said that the passenger throughput and the completion of aircraft take-off and landing sorties of Pudong Airport in 2021 were lower than expected at the beginning of the year. The epidemic spread in many places in China limited the recovery and growth of the business volume of Chinese routes. Due to the global epidemic situation, the business volume of international routes was still greatly affected, and the business development and customer operation of the company were greatly affected by the continuous impact of the epidemic, Business continues to be under pressure.

Under the pressure of performance, the market value of the above-mentioned airport shares decreased to varying degrees last year. In 2021, nearly 40% of the market value of Shanghai International Airport Co.Ltd(600009) evaporated; Followed by Beijing Capital Airport shares (- 26%), Guangzhou Baiyun International Airport Company Limited(600004) (- 15%) and Shenzhen Airport Co.Ltd(000089) (- 10%).

optimistic about the long-term investment value of hub airport

On the whole, 2021 listed Airport Inc have reported losses in recent years. In the pre announcement, they all mentioned the impact of New Coronavirus pneumonia on the airport, and the passenger throughput and take-off and landing has decreased. In addition, due to the global epidemic situation, the business volume of international routes has been greatly affected, and the operation continues to be under pressure.

Guosen Securities Co.Ltd(002736) pointed out that each hub airport still showed a loss trend as a whole, and the loss range was the same or slightly expanded compared with 2020. In the fourth quarter of 2021, due to the impact of the epidemic, the passenger flow was low, there was still significant pressure on the revenue side of each Airport Company, and the performance of each company in the fourth quarter was not significantly improved compared with 2020, which was still at a trough.

Can China’s listed airports turn losses into profits in 2022? Xiong Wei, an expert of civil aviation resource network, believes that the impact of the epidemic on international passenger transport has profoundly changed the profit model of China’s listed airports. In addition, the reduction of the number of flights makes it difficult to avoid the overall loss of airport stocks in 2021. The sharp decline in revenue from airport tax-free business, including changes in the business model with partners, will profoundly change the revenue expectations of China’s listed airports in the short and long term. Whether 2022 listed airports can turn losses into profits mainly depends on China’s epidemic prevention and control and the overall situation of the aviation industry. Sustained profitability needs to be adjusted by the overall environment of international passenger transport policy.

Guosen Securities Co.Ltd(002736) pointed out that the core driving force of airport performance still comes from tax-free rent. The traffic monopoly position and high-quality consumption scene of the hub airport gathering high net worth passengers have not fundamentally changed due to the epidemic, and the tax exemption of Hainan outlying islands is expected to expand a number of tax-free operators. In the next competition for the operation right of airport tax-free channels, the airport may have stronger bargaining power in the future. At present, the performance of the hub airport is under pressure due to the reduction of international passengers. Once the door is opened, the performance of the airport will be greatly improved. The valuation system of the airport has gradually transitioned to consumer stocks. Driven by tax-free consumption, it is difficult to return to the valuation system of public utility stocks before 2017 and continue to be optimistic about the long-term investment value of the hub airport.

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