Baiyun Airport (600004): Commercial potential unleashes effective management

Baiyun Airport (600004): Commercial potential unleashes effective management

Key points in the report Description Baiyun Airport disclosed the financial report for the first half of 2019, and the company achieved operating income for the first half of the year38.

6 ppm, a ten-year increase of 3.

7%; realized attributable net profit 4.

3 trillion, a year reduction of 39.


Incidents commented on the release of commercial potential and the continued increase in tax exemptions.

With the commissioning of T2 Terminal, the company’s commercial potential was released, and the growth rate of non-aerospace business in the first half of the year reached 28.

5%, of which: 1) It is estimated that the company’s tax-free royalties in the first half of the year amounted to 2.

9 trillion, an increase of about 383 in ten years.


According to the China National Tourism Interim Report, Guangzhou Airport Duty Free Shop realized tax-free business income in the first half of the year.

40,000 yuan, a long-term growth of ten years ago5.

600 million, an increase of 197.

2%; it is estimated that the single passenger tax exemption for Baiyun Airport in the first half of the year reached 91.

4 yuan, a significant increase of 169 over the first half of 2018.

2%; 2) Achieve advertising revenue 3.

5 ‰, an increase of 84 in ten years.

9%; 3) Other business income is about 16.

30,000 yuan, an annual increase of 7.


The base effect is significant, and revenue is slightly under 杭州夜网论坛 pressure.

In the first half of 2019, Baiyun Airport’s operating income increased slightly every year3.

7%, mainly due to the cancellation of the refund policy of the Civil Aviation Development Fund. The operating income of Baiyun Airport increased annually in the second half of the same caliber.

2%, of which Q1 and Q2 increased by 24 respectively.

4% and 8.


The improvement of Q2 growth rate is mainly due to two reasons: 1) With the opening of T2 terminal in Q2 2018, the two high base effects are significant; 2) Due to the impact of passenger flow structure and insufficient supply of goods, the growth rate of Q2 tax-free income slowsSlow, leading to an improvement in non-aviation revenue growth.

With the improvement of the company ‘s passenger flow structure catalyzed by the summer heat in the second half of the year, the problem of shortages has been resolved, and the trend of high-tax business of tax-free businesses has not changed.

Optimized management and effective cost control.

In the first half of the year, Baiyun Airport’s operating costs increased in advance.

2%, mainly due to the substantial increase in depreciation costs of the new terminal after the commissioning of the new terminal in the second quarter of 2018.

Excluding the base effect, the company’s operation and management continued to develop, and the increase in operating costs of new production capacity was limited. In the second quarter of 2019, the operating costs of Baiyun Airport only increased slightly.


In addition, the company’s sales expenses and management expenses decreased by 79 in the first half of the year.

1% and 12.

6%, due to: 1) the company withdrew from self-operated catering and retail; 2) the optimization of operating governance and proper control of management expenses.

The regional competition pattern is optimized, and the turning point of management is upward.

Baiyun Airport is positioned as a large-scale international hub, considering: 1) the improvement of the regional competition structure and the continuous optimization of passenger flow structure; 2) the optimization of business models to enhance cost management and control capabilities; 3) the flexibility of non-airline revenues including tax-included business, tax-free business and advertising businessRelease, predicting the company’s EPS for 2019-2021 will be 0.54 yuan, 0.

72 yuan and 0.

89 yuan, corresponding to PE of 35, 26 and 21 times, maintaining the “buy” level.

Risk Warning: 1.

Aviation demand has grown significantly; risks of tax exemption policies; mode change has not met expectations.