Shares of Beijing Airport (HKEX: 00694) continued their downward trajectory, falling nearly 7% and hitting their lowest level in nearly fifteen years.

At the time of writing, the stock was down 5.03%, trading at HK$1.51, with a turnover of HK$147.545 million.

Background on the Shareholder Meeting

On June 17, the company held its 2025 annual general meeting, where a proposal for a "no dividend" profit distribution plan was reviewed and passed.

The proposal received approximately 3.47 billion votes in favor, representing about 99.99% of the total votes cast, passing by an overwhelming majority.

The primary reasons cited for the decision were accumulated losses reaching a statutory threshold and the need to retain profits to cover historical deficits and sustain normal company operations.

Analyst Perspective on the Sector and Company

Morgan Stanley recently issued a research report maintaining a cautious stance on airport stocks, citing rising fuel costs as a drag on passenger volume growth and noting that improvements in the duty-free business will take time.

The firm believes that without the addition of new flight slots, Beijing Airport will face profitability pressure.

Furthermore, its potential exclusion from the Southbound Stock Connect program may continue to exert downward pressure on the company's valuation.

Morgan Stanley reiterated its "underweight" rating on Beijing Airport and significantly reduced its target price from HK$2.40 to HK$1.40.