Financial News
Written by: Lin Leqian
2020-08-12 19:22
Last update date: 2020-08-12 19:33The new crown pneumonia epidemic has brought the global aviation industry to a standstill. Cathay Pacific (0293) today (12th) issued the latest report, which lost 9.9 billion yuan in the first half of the year and did not pay the first interim dividend. It coincided with another good news about the pneumonia vaccine, which stimulated Cathay Pacific's share price to soar 12.4% to a high of 5.96 yuan. However, some analysts believe that Cathay Pacific’s current rate of “burning money” means that there is a very high chance that it will “raise the flag” in the future. Others say that the stock price surged today only for a short period of time and will continue to be under pressure in the future, with support at 5.4 yuan.
Cathay Pacific's loss attributable to shareholders in the first half of the year was 9.87 billion yuan, while profit at the same time last year was 1.3 billion yuan. During the period, revenue fell 48.3% to 27.67 billion yuan, including passenger transportation revenue fell 70.5% year-on-year to 11.06 billion yuan, while freight revenue rose 10.4% to 12.69 billion yuan.
As for fuel hedging losses, it recorded 1.6 billion yuan, a significant increase from 114 million yuan in the same period last year. However, benefiting from the average jet fuel price fell by 20% and fuel consumption was reduced by nearly half, fuel costs fell 50.6% year-on-year to 73.2 during the period. 100 million yuan.
Cathay Pacific announced its half-year results at noon. Due to good news from the pneumonia vaccine, the stock price continued its early rise and closed at 5.88 yuan, up 12%.
Cathay Pacific Chairman He Yili revealed that the group still "burns" about 1.5 billion yuan every month. ﹙Profile Picture﹚
"Burn money" about 1.5 billion yuan per month
Cathay Pacific Chairman Patrick Healy said at the results announcement that the group’s recent recovery has been very slow. Its capacity was adjusted to 8% in August and September. The group’s monthly “burning money” is about 1.5 billion yuan. There are currently three One-tenth of the flight is parked in Australia, but the relevant cuts are not enough. The group must maintain a sustainable and healthy financial situation. Restructuring is a "difficult but necessary decision". The board of directors will propose the most suitable future in the fourth quarter. Scale and mode of operation.
As of the end of June this year, Cathay Pacific had a net loan of RMB 93.033 billion, and its net debt ratio rose from 1.31 times to 1.88 times. Cathay Pacific said it officially completed the 39 billion yuan capital restructuring plan today and assessed that operating cash is sufficient to meet the current needs for at least 12 months.
Cathay Pacific’s loss attributable to shareholders in the first half of the year was 9.86 billion yuan, and its revenue fell 48.3% to 27.67 billion yuan. (Profile picture)
Analysis: It is expected that more planes will be transferred to the desert by cutting one adult hand
Some analysts of foreign banks believe that if the aviation industry still fails to return to normal in the next year, I believe that Cathay Pacific’s rate of burning money is very high, and the chances of needing to "raise the flag" are very high. Rights issue. He predicted that the government might use this to increase its control over Cathay Pacific and strengthen its monitoring of various infrastructure.
The management predicts that it will put forward a restructuring plan in the fourth quarter of the board of directors. He believes that Cathay Pacific will still be unable to recover the passenger capacity in 18 and 19 in the next 1 to 2 years. It is inevitable that the layoff plan is inevitable. The group is expected to cut 10% Manpower and transfer more aircraft to the Australian desert.
In addition, he expects that consumption patterns will change after the epidemic, or tourism and business needs will be reduced. However, even if the epidemic passes, a certain social distance will still be maintained during future flights. Each flight may only fill 60% to 70% of the passengers. The reduced demand at the same time has little effect on the price of air tickets.
Zhang Zhiwei, co-director of Xincheng Securities, believes that the economy has not yet rebounded in one day, and Cathay Pacific Passenger Transport and Cargo is still facing heavy pressure and is downplaying the performance of its medium and long-term business. (Profile picture)
Stock commentator: the stock price is under pressure and support at 5.4 yuan
Zhang Zhiwei, co-director of Xincheng Securities, believes that the government-led 40 billion capital restructuring plan may help Cathay Pacific "suspend" for more than one to two years. However, the economy has not rebounded in a day, and passenger and freight transportation are still under heavy pressure. The continued loss of fuel hedging is disappointing. After the acquisition of Hong Kong Express, no synergy effect has been seen. The transfer of the aircraft to the Australian desert reflects that the cost has been "decreased without further reduction", and the performance of the medium and long-term business is downplayed.
He pointed out that Cathay Pacific will not only have to wait until the end of the epidemic, but also have to wait until the flight resumes to record profits. I believe it will be a very long process, and it is recommended that investors should not get the shares. In addition, he pointed out that Cathay Pacific’s stock price dropped from a high of more than 9 yuan at the beginning of the year to the current level of about 5 yuan. Today, it has soared by more than 10% and only rebounded briefly. It is believed that the vaccine news has nothing to do with business performance. The stock price will still be under pressure in the future. The material support level is 5.4 yuan.
Cathay Pacific responds to layoffs: "difficult but necessary decisions" must be made
Cathay Pacific loses 9.9 billion in half a year, no dividends, fuel hedging loss of 1.6 billion, stock price rises by more than 10%
Cathay Pacific rights issue received 882 applications involving 3.43 billion shares exceeding 0.37 times
Cathay Pacific
