The mainland's China Eastern Airlines provides passenger and cargo airline services both internally and internationally. The company's stated strategy is to generate business by building upon its base and dominant presence in Shanghai.
The carrier is one of three, along with China Southern Airlines and Air China, chosen as bases upon which the General Administration of Civil Aviation is restructuring the industry.
According to a recent stock report, Deutsche Bank sees domestic economic growth in China helping the airline grow its passenger and cargo volumes at a faster rate than capacity is developing, resulting in improved load factors and profitability.
The report also said the industry regulator was committed to constraining competition.
This, coupled with the release of strong April operating statistics, convinced Deutsche Bank to retain its 'buy' recommendation on China Eastern with a suggested HK$1.54 price target.
Graphic: NOW26gwz
