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2026-09-18 16:26:32 China's air ticket prices rallied 14-17% YoY from May to Jun 2026, before ebbing back to roughly flat to a 3% hike in Jul to Aug, Goldman Sachs said in a research report. Domestic airline passenger traffic also rebounded in Jul to Aug, reflecting that aviation demand remains price elastic. The broker foresaw travel demand volatility to intensify during this summer holiday period due to fluctuations in air ticket prices and unfavorable weather conditions in certain regions. It believed demand during the National Day Golden Week holiday may generate a longer-tail effect similar to recent holidays. The broker was upbeat on Macau gaming stocks, including Galaxy, Sands and Wynn, as market expectations are broadly low, while margins may reach an inflection point in 4Q26. In addition, GGR and daily opex bases in Nov to Dec are relatively low. Meanwhile, the broker was also positive on TRIP.COM-S (09961.HK). Its 3Q26 guidance showed that the impact from the platform's adoption of a new tiered hotel commission system after the conclusion of the antitrust investigation in Jul was only mild. Current valuation is at a low level, and investors are advised to accumulate on dip. The broker assigned a Buy rating with a TP of HKD536, citing inbound tourism and international business expansion as drivers for sustained growth. For hotels, Goldman Sachs preferred HWORLD-S (01179.HK) and Atour Lifestyle Holdings Limited (ATAT.US), both rated Buy. It believed the two companies have higher visibility on network expansion and profitability improvement, with TP at HKD51 and USD52 respectively. The broker maintained a Neutral rating on CTG DUTY-FREE (01880.HK) with a TP of HKD62, focusing on sales performance of Hainan duty-free stores during the peak season from Oct 2026 to Mar 2027. It rated SAMSONITE (01910.HK) Buy, expecting revenue to reach an inflection point from the end of 2026 to early 2027, with a TP of HKD18.4. Regarding airlines, Goldman Sachs assigned Buy ratings to all three major Chinese airlines. TP for CHINA EAST AIR (00670.HK), AIR CHINA (00753.HK) and CHINA SOUTH AIR (01055.HK) were HKD4.4, HKD6.4 and HKD4.6 respectively. The broker expected performance to continue being dragged by surging oil prices, while favoring SPRING AIRLINES (601021.SH) for its lowest sensitivity to oil prices among peers. ~ AASTOCKS Financial News Website: www.aastocks.com | |