Category: Money tips Release Date: 2007-03-12
Source: East China Sea stock
RMB appreciation and the fall in oil prices double beneficiaries, aviation section is the only round of speculation Quotes no significant low-cost mass plate. Continuous appreciation of RMB, the oil continuous decline in the increase in fuel duty to the company constituted a major positive in real terms. Degree by the National aviation industry to enhance the economy and the aviation industry M & A expectations, the share price undervalued the company suspected of positive performance before and after the National Day is expected to pay close attention to
600029 Southern Airlines falling oil prices fuel tax increases of the three major currency appreciation of the positive
Today, the entire air section 2:00 in the afternoon appeared collective pulled, with the decline in international oil prices and the continued appreciation of the yuan, the investment value of airline stocks will be more dazzling in the future, as a large market cap, lower-high quality Aviation stocks certainly be favored institutions, such as the China Southern Airlines (600029)
Drop in oil prices constitute a positive
September 25, the New York Mercantile Exchange, light sweet crude for delivery in November futures price 59.73 U.S. dollars a barrel, setting a six-month to the lowest position. National crude oil prices from 80 U.S. dollars / barrel down to 59.73 U.S. dollars in just 2 months or so, oil prices plummeted by 33%. While oil prices fell sharply at the same time, airline stocks will be the biggest beneficiaries. Caused by low-cost airline stocks culprit is the rise in international oil prices, brought about by the increase in operating costs, from the statistical data show that the domestic aviation fuel prices have been repeated successive price increases, the price of aviation fuel per ton from the in 2003 rose to 3,000 yuan in a straight line now more than 6000 yuan per tonne, or up to 80%, also led the major airlines fuel costs as a proportion of the total cost of more than 35% suddenly rose to become the biggest airline expenses. Airlines environment of high oil prices, huge loss 2.57 billion yuan in the first half of the situation, which is caused by a continuous decline in airline stocks important reason. At present, oil prices fell to their revaluation brings opportunities, according to analysis, assuming the mid-year 2006 oil prices remain unchanged, China Southern Airlines basically can keep low-profit, if the international oil prices to maintain or decrease is expected to air in 2007 companies and shipping lines will be improved earnings. Shows that fall in oil prices, airline stocks will benefit greatly from subject matter.
Companies benefit from the appreciation of the renminbi
Air plate not only benefit from the reduction in international oil prices, but also benefit from the appreciation of the RMB. The recent appreciation of the RMB has maintained continuous moderate trend, while China Southern Airlines will be the biggest beneficiary of the yuan appreciation. Southern primarily in U.S. dollars finance leases or bank loans purchased the aircraft in the international aviation fuel procurement, Air Materiel lease, purchase and repair, etc. have a large number of U.S. dollar transactions and dollar liabilities and international flights taking off and landing fees at foreign airports are made appreciation of the renminbi in the process of benefit. Company's 2005 financial cost of 4.39 billion, of which 1.252 billion yuan exchange rate increased earnings, according to the existing calculation of the total share capital of 4.374 billion shares, equivalent to earnings per share of 0.2862 yuan. Also, according to calculation, the yuan rise of 5%, China Southern Airlines theoretical earnings per share is expected to go up by 0.2 yuan, and therefore into the appreciation of the yuan against the backdrop of the cycle, the performance of China Southern Airlines is expected to have experienced substantial growth.
Domestic air leading up soon
RMB appreciation and a decline in international oil prices would make the whole aviation industry, warming, while China Southern Airlines is one of the beneficiaries of the inevitable. On the other hand, the company will not only benefit from the changes in market conditions, and the company's own strength also ensures a strong impetus to the development of its huge. China Southern Airlines in the domestic aviation industry leading position no shake. The company's passenger traffic in recent years, the number of scheduled flights per week flying hours, the number of routes and fleet size in the domestic airlines, was ranked first. According to an authoritative media, China Southern will form a joint venture cargo airline, has set up a preparatory group cargo airline, by the general manager himself served as head of the Division Xian China, China Southern will be fully into the future cargo operations. Boeing's report pointed out that in the next 20 years (2003-2023) Sino-US aviation market, the freight route will be growing at a rate of 8.8%, while the faster rate of growth in Central Europe, will reach 9.3%. There is no doubt that the market will be China Southern Cargo Airlines important in the future profit growth. Shows good prospects for the future development of the company.
The secondary market, the benefits of real estate appreciation of the renminbi plate and benefit from lower oil prices and chemical industry, chemical fiber, sea plates have both been continuously strengthened, then the only benefit from the yuan appreciation has benefited from lower oil prices, the aviation section, what is reason not to rise it? China Southern Airlines as an aviation unit in the lead I believe the future is bound to become a rising leader, Southern Zhang Sheng can be expected.
