1H26 Beat Underpinned by Pricing Power; Reiterate OW

研报英文原文证据摘录

1H26 Beat Underpinned by Pricing Power; Reiterate OW

Idea

July 22, 2026 08:00 PM GMT

Morgan Stanley Asia Limited+MCathay Pacific Airways | Asia Pacific Qianlei Fan, CFA

Equity Analyst

1H26 Beat Underpinned by Qianlei.Fan@morganstanley.comEvan Chen +852 2239-1875

Research Associate

Evan.Chen@morganstanley.com +852 2848-7317

Pricing Power; Reiterate OW Tenny Song

What’s Changed Tenny.Song@morganstanley.com +852 3963-1737

Cathay Pacific Airways (0293.HK) From To

Price Target HK$16.20 HK$16.90

Most drivers of the 1H26 beat will likely continue to support

2H26 performance. Jet fuel price normalization amid a potential Cathay Pacific Airways (0293.HK, 293 HK)

de-escalation of Middle East tension could bring further upside. Hong Kong/China Transportation & Infrastructure | Hong

Kong

1H26 prelims – a beat: Attributable profit was HK$6.0-6.5bn, up 62-76% YoY. Stock Rating Overweight

Excluding the HK$1.4bn disposal gain from Air China, implied NP of HK$4.6-5.1bn Industry View In-Line

Price target HK$16.90

still rose a robust 26-40% YoY, well above our expectation. Operating momentum Up/downside to price target (%) 24

was solid: CPA and HK Express RPK grew 15.3% and 9.7% YoY in 1H26, much Shr price, close (Jul 22, 2026) HK$13.59

52-Week Range HK$14.15-10.34

stronger vs. Chinese mainland full-service airlines (+3-7% YoY for the Big Three), Sh out, dil, curr (mn) 7,020

supported by resilient premium cabin and transit pax demand, in our view. Mkt cap, curr (mn) HK$95,406

EV, curr (mn) HK$142,225

Avg daily trading value (mn) HK$143

Key drivers of 1H26 beat and outlook for 2H26. 1) Strong premium cabin demand

Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

supported by solid economic growth in HK – the momentum will likely continue in

EPS (HK$)** 1.68 1.89 1.86 2.05