[Click eStock] "Jin Air, 1Q Record-Breaking Earnings Expected"

Daishin Securities maintained its investment opinion of 'Buy' and target price of 25,000 KRW for Jin Air on the 29th.

Jin Air is expected to significantly exceed market expectations by recording its highest-ever performance in the first quarter of this year. Jin Air's sales for Q1 2023 are projected to be 283.8 billion KRW, with an operating profit of 53.6 billion KRW, representing a 320% increase in sales compared to the previous year and a turnaround to profitability in operating profit. The operating profit is expected to exceed consensus estimates by more than 40%.

Jin Air's international passenger transport from January to March recorded 722,300 passengers. In January and February, Jin Air's international passenger numbers were 219,000 and 215,000 respectively, while from March 1 to March 28, the number increased significantly to approximately 338,000. Despite entering the low season in March, the increase in passenger numbers is due to the continued demand deferred by COVID-19. Jin Air's international passenger transport in Q1 2023 is estimated to be about 800,000, which is a 135.3% increase compared to approximately 340,000 passengers in Q4 2022.

The reopening of China routes is also expected to ease the supply concentration that had been focused on Japan and Southeast Asia. Since March, airlines have been resuming and increasing flights on China routes. The reopening of China routes is positive in that it alleviates the supply concentration of low-cost carriers (LCCs) that had been focused on Japan and Southeast Asia, and also improves operational efficiency of aircraft due to increased demand on these routes. Jin Air has resumed flights on the Jeju-Shanghai and Jeju-Xi'an routes to prepare for demand from China.

Yang Ji-hwan, a researcher at Daishin Securities, analyzed, "Jin Air is expected to record the highest-ever quarterly operating profit in Q1 this year, and the price-to-earnings ratio (PER) based on estimated earnings for this year is only about 6 times."

This content was produced with the assistance of AI translation services.