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| HSI1 | 22,671.86 | -405.05 | 342.10B |
| HSCEI1 | 7,460.84 | -147.54 | 100.47B |
| Back Zoom + Zoom - Block Traded | |
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2026-06-26 17:04:39 HSBC Global Investment Research issued a report noting that easing tensions between the US and Iran have led aviation fuel prices to retreat 54% from the peak recorded since the outbreak of the Middle East conflict. Although prices remain 29% higher than pre-conflict levels, this is believed to be sufficient to affect airlines癒礎 earnings outlook for the second half of the year. The broker upgraded AIR CHINA (00753.HK), CHINA EAST AIR (00670.HK) and CHINA SOUTH AIR (01055.HK) from Reduce to Hold, and raised their target prices by 21%, 59% and 33% to HKD4.6, HKD3.5 and HKD3.6, respectively. HSBC Global Investment Research said it prefers CATHAY PAC AIR (00293.HK), reiterating its Buy rating with an unchanged TP of HKD15.3, citing strong premium travel demand and persistently elevated air cargo rates. The broker noted that the H-share prices of the three major Chinese airlines have fallen cumulatively by 35% to 38% over the past six months, significantly underperforming the HSCEI over the same period. It expects lower oil prices to drive a demand recovery in the second half of the year. Coupled with the upcoming summer peak season, passenger traffic and load factors are expected to rebound markedly from July. The broker lowered its loss forecasts for this year, projecting combined losses of RMB16.8 billion for the three airlines, compared with a previous estimate of RMB21.9 billion. Earnings forecasts for 2027 to 2028 remain unchanged. (gc/u)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |