More time needed to return to the black
- 1H22 net loss was the widest on record, and equivalent to three-four years of annual profit prior to COVID-19
- CEA saw the largest increase in net losses because of the grounding of aircraft and Shanghai lockdowns
- Cut FY22/23F earnings estimates to reflect slower recovery in passenger traffic; more equity may need to be raised given its weak financial health
- Maintain HOLD with lower TP of HK$2.60
