Red-chip listing candidate China National Aviation Co (CNAC) says it is confident of achieving double-digit growth next year despite the impact of the slowdown in regional tourism on its main income provider Hongkong Dragon Airlines (Dragonair).
Dragonair contributed 87 per cent of CNAC's pre-tax profit last year.
CNAC - which is hoping to raise $1.11 billion from its flotation - has revised this year's earnings forecast downwards by 5 per cent from $420 million to not less than $400 million.
The revision means growth this year will slow to about 6.6 per cent instead of the 10.6 per cent originally forecast.
CNAC executive director Zhang Xianlin was optimistic next year's target of double-digit growth - set by chairman Wang Guixiang - could be achieved.
The company starts its public offer of about 37.6 million shares today and closes on Thursday.
The shares are priced at $1.63 each, putting them on a multiple of 12.5 times this year's earnings on a fully diluted basis.
