On July 23, CATHAY PAC AIR rose 3.24% in regular trading, trading at HK$14.02/share with turnover of HK$61.20 million, extending the previous session's gains.
The rally was driven by a positive profit alert issued on July 22, in which the company forecast H1 attributable profit of approximately HK$6.0 billion to HK$6.5 billion, representing a 62% to 76% year-over-year increase from HK$3.7 billion. The figure includes approximately HK$1.4 billion in deemed disposal gains from the dilution of its stake in Air China. Operationally, June passenger volume rose 12% year-over-year, with H1 cumulative passengers up 17%, while June cargo volume increased 9%.
On the ratings front, Citi upgraded CATHAY PAC AIR from Sell to Buy with a target price of HK$16.2, naming it the top pick in Asia-Pacific airlines. Bank of America also raised its target to HK$12.6. Additionally, JP Morgan significantly increased its holding from 2.23% to 10.45%.
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