[ET Net News Agency, 8 April 2021] BOCOM International raised its target price for Air
China (00753) to HK$7.54 from HK$6.59 and maintained its "buy" rating.
On the back of a 47% YoY drop in FY20 revenue, Air China (AC) reported a net loss of
RMB14.4bn. However, the research house anticipates passenger yields will recover during
2021, with overall yield to rise 10-15% by end-2021, according to its estimates.
Despite a higher proportion of wide-body jets, AC reported ongoing passenger-to-cargo
conversions which will allow wide-body passenger jets to serve as full freighters as long
as international traffic remains flat. As the research house expects ongoing global
vaccine rollout to boost air cargo during 2021, AC may see rising cargo yields (100% YoY
in FY20) as a result. (RC)