[ET Net News Agency, 23 December 2019] Daiwa lowered its rating for Beijing Capital
International Airport (00694) to "underperform" from "hold" and maintained its target
price at HK$6.4.
BCIAs share price recovered in August-October on the back of upbeat 1H19 results and its
defensive nature amid the escalating China-US trade war, resulting in its YTD performance
narrowing to -6%. However, the research house sees the stock's prevailing valuation as
unattractive.
Unlike other tier-1 Chinese airports, BCIA recorded a YoY decline of 4.8% in the number
of flights. They believe the decline is mainly attributable to the loss of passengers to
Daxing Airport and is likely to continue until the transition is completed in 2022. (RC)