The Shanghai airport fell by the daily limit of 10 per cent at the start of trading, with more than half a million orders placed. By midday, the Shanghai airport had closed at 71.1 yuan, with a market value of 137 billion yuan.
Shanghai airport fell limit, or related to the performance forecast loss. According to the announcement, Shanghai Airport expects a loss of 1.29 billion yuan to 1.21 billion yuan in 2020 and a deduction of non-net profit of -1.406 billion yuan to -1.326 billion yuan. In 2019, the Shanghai airport’s net profit was 5.03 billion yuan, while the deduction of non-net profit was 4.98 billion yuan.
Shanghai Airport explained that since 2020, the global aviation industry has faced severe challenges due to the outbreak of Covid-19, which has seriously affected the industry. The epidemic has greatly affected the business development and customer management of Shanghai Airport, and the passenger throughput and aircraft take-off and landing number of Pudong Airport have decreased significantly.
Losses, share prices fell by the daily limit, which is in the case of many listed companies. However, Shanghai airport is a little special, it is a public offering of a brother Zhang Kun’s heavy position.
As the first active equity fund manager to manage more than 100 billion yuan in a public offering fund, Zhang Kun has been on a hot streak recently. On January 25, the net value of Yi Fang Da Blue Chip Sites managed by Zhang Kun soared by 5% in one day due to its heavy position in liquor shares. “Blue Chip”, “Fund” and “Zhang Kun” were quickly searched on Weibo. Later, Zhang Kun had a huge group of fans who supported the fund, which triggered a heated discussion on the fund in the whole society. Zhang Kun has thus become a new public fundraising elder brother.
It is worth mentioning that the Shanghai airport is Zhang Kun management Yi Fang Da small – and medium-cap mixed base of one of the heavy positions of stocks. Data show that in the second quarter of 2018, Yi Fonda’s small and medium cap newly entered Shanghai Airport’s top ten shareholders, holding 14.47 million shares, ranking the seventh shareholder. After that, the number of shares increased to 22.3 million in the third quarter of 2018, the first quarter of 2019, the third quarter, the fourth quarter, and the first quarter of 2020.
In the second quarter of 2020, Zhang Kun made his first major reduction in Shanghai Airport, reducing his holdings by 15.8 million shares.
In the third quarter, however, Zhang added more space to the Shanghai airport. In the third quarter of 2020, Efunda Small and Medium Cap Fund held 19.6 million shares of Shanghai Airport, with 1.79% of its holdings, ranking the fifth largest shareholder.
“Many of the things I invest in are things that have strong constraints on the supply side, such as liquor, airports, blood products and medical services companies,” Mr Zhang said in an interview.
According to the data for the fourth quarter of 2020, Zhang Kun held 21.8 million shares of Shanghai Airport, an increase of 2.2 million shares compared to 19.6 million shares in the third quarter. From the shareholding proportion of the net value of the fund, Shanghai Airport from the third quarter of 2020 4.79%, down to the fourth quarter of 2020Q 4.11%.
Calculated by 21.8 million shares, Shanghai airport today a word down the limit, Zhang Kun’s Yi Fang Da fund equivalent to a day of evaporation of 170 million.
From the trend of K line of Shanghai Airport, the overall is relatively stable. Shanghai Airport once hit a record high on August 27, 2019, with the stock price reaching 88.1 yuan, and the stock price has not exceeded this high since then.
From January 2019 to date, the increase is 22%, with an interval amplitude of 96.8%. From January 2020 to date, the increase is -8.8%, with an interval amplitude of 45%, and the increase is 10% in the fourth quarter of 2020.
Under the influence of the new crown epidemic, the airport, shipping industry is generally depressed, Zhang Kun in this background of the move to add warehouse quite inexplicable.
Much of the airport’s revenue comes from duty-free shops and the like.
On July 19, 2018, Rishang Duty Free Bank (Shanghai) Co., Ltd., a subsidiary of China International Duty Free Holding Company, was selected as the duty-free shop project in Shanghai Pudong International Airport, and the two parties signed the contract of operation right transfer of duty-free shop on September 7 of the same year.
Announced on January 30, Shanghai airport duty-free with lines (Shanghai) co., LTD. (hereinafter referred to as “Shanghai on day”) signed the Shanghai pudong international airport duty-free items right transfer contract of the supplementary agreement “(hereinafter referred to as” supplementary agreement “), the supplementary agreement on day needed to run the duty-free shops in Shanghai in the pudong airport to Shanghai airport to pay the cost of revised related terms. The main terms include that when the actual monthly international passenger flow is less than or equal to the average monthly actual international passenger flow in 2019 ×80%, the “monthly paid fee” will be charged according to the “monthly actual sales commission”.
In 2020, the rental income of duty-free shops will reach 1.156 billion yuan, a sharp decline compared with before the epidemic. From 2017 to 2019, Shanghai paid 2.555 billion yuan, 3.681 billion yuan and 5.21 billion yuan to the Shanghai airport for duty-free shop rent. From 2021 to 2025, the business income of duty-free shops in Shanghai Airport will largely depend on the progress of the epidemic situation and the recovery of passenger flow in Pudong International Airport and Hong Kong, Macao and Taiwan regions, which is uncertain.
Due to the impact of the outbreak, and tax exemption agreement revisions, agencies have been downgraded. Guotai Junan believes that the duty-free contract adjustment is lower than expected, and the EPS forecast for 2020-22 is lowered to -0.63/0.05/1.60 (the original 0.29/0.91/2.52). Hainan island and online channels have reduced the expected value of the duty-free channel of the airport, and the bargaining power of the airport is weakened.
The data show that the airstrip, terminal and office space of Shanghai Airport are leased from Shanghai Airport (Group), the major shareholder. The lease contract is signed once a year, and the amount increases year by year. In recent years, the site lease cost is basically equivalent to one tenth of the annual revenue of Shanghai Airport, and the cost is relatively high.
The pricing power of Shanghai airport mainly comes from the downstream duty-free shops and shops in the airport, etc., which have the pricing power, but the upstream lessor has no pricing power. For example, due to the impact of the New World epidemic, the passenger flow will decrease, so the rental income such as duty-free shops will decrease, which is also an important reason for the performance loss of Shanghai Airport.
Shanghai Airport said that in order to cope with the impact of the epidemic, in terms of operating income, in accordance with the relevant policies and requirements of the Civil Aviation Administration of China, the company exempted related project fees and reduced some project fees; According to the relevant policy requirements of Shanghai State-owned Assets Supervision and Administration Commission (SASAC), the rent fees of non-public small and medium-sized enterprises have been reduced or exempted.
However, under the continuous impact of the epidemic and duty-free shops, it remains to be tested whether Shanghai Airport can stabilize and get out of the trough of its performance.