CPCAY - Cathay Pacific: Hopes Of Recovery

• The cargo business's strength was sustained in 2H 2020 due to supply constraints and the start of the peak season, and vaccine distribution could provide upside to revenue in 2021.
• Cathay Pacific has put in place new initiatives to deliver cost savings, but further fund raising and impairments have not been ruled out.
• Cathay Pacific's core passenger services business remains the weak spot, but strong demand for the Singapore travel bubble flight suggests that air travel will eventually normalize.
• Cathay Pacific trades at 0.62 times P/B and 18.3 times consensus forward FY 2022 P/E.

For further details see: