Cathay Pacific Airways (00293) was issued a major aviation safety risk warning by the National Civil Aviation Administration
The market is worried that Cathay Pacific’s mainland business will be hit, and the funds rushed out of the market yesterday. Cathay Pacific’s share price fell by half; controlling shareholder Taikoo A (00019) shares fell 6.2%; the same Swire Properties (01972) was not spared, the stock fell more than 5%. After a round of impatience, the market value of the Taikoo company evaporated by 16.97 billion yuan. The overall market rose by 114 points after the first rise, and the HSI futures fell 323 points during the day. Sino-US trade negotiations have increased in difficulty, and European and American stock markets opened lower. HSI futures undertook the daily market to fall 323 points, and the middle of the night market fell 325 points, see 25235 points.
The National Civil Aviation Authority issued a major aviation safety risk warning to Cathay Pacific on Friday
Furui is concerned that Cathay Pacific’s mainland routes and some European and American routes may be affected. Although Cathay Pacific immediately dismissed two ground staff who leaked police flight information and indicated that the pilot involved had not performed any mission.
On the other hand, Cathay Pacific sent an email warning that employees should not support or participate in illegal demonstrations at the airport or be dismissed.
Cathay Pacific’s repeated response failed to allow investors to “receive goods”. It was sold by investors yesterday. The daily turnover was 164 million yuan, a four-fold increase from the previous day; the short-selling increased by 7.6 times to 73.17 million yuan.
Cathay Pacific’s share price closed at a low of 9.8 yuan, down 4.8%, the lowest since October last year. Shares of Cathay Pacific’s controlling shareholder, Taikoo A, fell 6.2% to 76.7 yuan; Taikoo shares B (00087) shares fell 4.9% to 12.36 yuan. The shares of the same-grade Swire Properties fell 5.3% to 25.55 yuan. After the rapid funding, the market value of the Taikoo shares fell by 16.9 billion yuan, down to 294.3 billion yuan.
Bank of Communications Furui downgrades Cathay Pacific
Bank of Communications International has proposed three reasons to bearish on Cathay Pacific, including continued social unrest that has led to multiple countries issuing travel warnings to Hong Kong, which poses a downward risk to Cathay Pacific’s service demand and yield; second, the National Civil Aviation Authority may limit Cathay Pacific’s The business in the Mainland and the use of airspace; the third is the negative impact of Cathay Pacific’s goodwill. BOCOM International reduced Cathay Pacific’s investment rating from “buy” to “neutral” with a target price of $11.17.
Furui said that Cathay Pacific’s 1% passenger yield and passenger traffic volume in the second half of the year have an impact on earnings of 309 million and 257 million yuan respectively. If Cathay Pacific’s passenger yields fall by 4.3% in the second half of the year, passenger traffic will increase by 7.3% and profit will reach 1.55 billion yuan. If passenger yields fall by 8% in the second half of the year and passenger traffic is flat, it will record a loss of 1.3 billion yuan. Furui maintains Cathay Pacific’s “Buy” rating with a target price of $15.
US stocks plunged ADR and fell 300 points
In addition, Shen Qinghong, director of Tengyi Fund Management Investment Management, said that Cathay Pacific Airways involved political events this time, based on the difficulty in assessing potential risks, so it is impossible to judge that the stock price is “falling enough”, so investors should avoid the entire Taikoo company for the time being.
Li Huifen, vice president of the KBA Group, believes that the recent social events will be resolved, and Cathay Pacific’s share price will have a chance to rebound. As for the buying position, during the financial tsunami in 2008, Cathay Pacific’s share price had fallen below 8 yuan, and it is not excluded that this short-term test will be 9 yuan or less.
As for the overall market, the Hang Seng Index fell 114 points and closed at 25,824 points. The HSCEI rose 4 points to close at 9997 points. The main board turnover was 58.7 billion yuan, a decrease of 14% from the previous day.
It is worth noting that the HSI futures day time period increased to 323 points before the close of the market, reported 25560 points. US stocks plunged in the early part of Monday, dragging the Hang Seng ADR down 324 points to 25,500 points.
Looking ahead to the market, Shen Qinghong said that the central bank cut interest rates closely, and individual central banks reduced their radicals. Investors are inevitably worried that the global economy will be undercover. The HSI may fall below 24,500 points sooner or later.
Li Huifen, vice president of Gaobao Group, said that once the Hang Seng Index fell below 25,500 points, the market will try to support the important support level of 23,800 points, but investors can consider starting to absorb at 24,500 points.