Beijing Capital International Airport Upgrade to Neutral on valuation de-risks

Research evidence excerpt

Beijing Capital International Airport Upgrade to Neutral on valuation de-risks

J P M O R G A N Asia Pacific Equity Research

09 June 2026

Beijing Capital International

Airport ▲Neutral

Previous: Underweight

Upgrade to Neutral on valuation de-risks 0694.HK, 694 HK

Price (09 Jun 26):HK$1.70

Price Target (Dec-26):HK$1.80

Beijing Capital International Airport’s (BCIA) risk-reward has moved back Infrastructure, Industrials &

towards balance after a sharp de-rating and the first visible profit inflection since Transport

COVID. We upgrade BCIA to Neutral from UW, with our HK$1.80 Dec-26 price Jenny Qiu, CFA AC

target and estimates unchanged. The stock is down 25% over the past 3M versus (852) 2800 8503

HSCEI down 3%, and now trades at 0.5x P/B, below its 0.6x historical trough, jenny.qiu@jpmorgan.com

suggesting the market already discounts much of the concern around a slower Karen Li, CFA

traffic recovery, weak duty-free monetization, and Stock Connect selling pressure. (852) 2800-8589

Earnings are also stabilizing, with BCIA delivering Rmb9MMs net profit in 1Q26 karen.yy.li@jpmorgan.com

– its first quarterly profit since COVID, after 16 consecutive loss-making quarters. Sunny Su

We do not turn OW because traffic momentum softened in April, with international (852) 2800 8551

sunny.su@jpmorgan.com

growth slowing to 9% Y/Y and domestic to 4% Y/Y, while IATA cut 2026 global

Mufan Shi

air traffic forecasts by ~3ppts amid higher fuel prices and Middle East conflict risk.

(852) 2800-8502

• Valuation reset changes the debate. BCIA’s investment case has shifted from mufan.shi@jpmorgan.comJ.P. Morgan Securities (Asia Pacific) Limited/ J.P.

avoiding earnings downside to assessing whether trough valuation now Morgan Broking (Hong Kong) Limited

compensates for still-fragile fundamentals.