Takeaways From Analyst Briefing
CX guided for HK$500m lower monthly cash burn in 1H21 vs 2H20. For 2H21, the carrier guided for cash burn to be reduced by a further HK$0.5b. We have estimated cash burn of HK$11b for 2021. CX expects China to gradually open up its borders by late-21 and has guided for 4Q21’s capacity to approximate 30% of pre-pandemic levels. We have lowered our capacity growth assumption and hence our target price is raised to HK$6.17 from HK$6.00. Maintain SELL.