$MEILAN AIRPORT (00357.HK)$ It rose nearly 7% in the afternoon, and the cumulative increase during the month was close to 40%. As of press release, it rose 6.62% to HK$33.8, with a turnover of HK$92.047 million.
According to the Southwest Securities Research Report, the lower valuation of Meilan Airport reflects market concerns about the level of corporate governance of Hainan Airlines and the characteristics of the industry where duty-free airport stores on the outlying islands have a low deduction rate. The bank believes that in the context of the release of shareholder risks, the level of corporate governance will rise, and valuations will be restored to the industry average; the rapid growth of duty-free exemptions on the outlying islands, which rely on internal circulation and low dependence on international traffic, will create a win-win pattern where duty-free businesses and channel owners grow bigger and stronger.
According to the report, in the golden ten-year history of the Hainan duty-free industry, Meilan Airport, which is the gateway to Hainan Airport, will see the performance of leading companies in the African aviation business increase, the cyclical performance will weaken, and growth attributes and certainty will further improve, and embark on a path of return in value as a core airport hub. The bank's target price of HK$43.38 covered the “buy” rating for the first time.