CATHAY PAC AIR

Cathay Pacific surged 4.19% to close at HKD 14.16, hitting a 52-week high, driven by a profit alert and multiple broker upgrades. The company guided 1H 2026 consolidated net profit of HKD 6.0-6.5 billion, up 15% YoY, with passenger traffic up 17% in 1H and 12% in June alone. Citi upgraded to Buy with a target price raised from HKD 12.5 to HKD 14.5, naming it the top APAC airline pick; BofA lifted its target from HKD 11.5 to HKD 12.6 but kept Underperform. The stock now trades above its MA20 (HKD 13.168) and MA60 (HKD 12.607), with a YTD gain of 12.11%, though a net profit margin of 11.5% lags some peers and headwinds include delayed Middle East route resumption and lower fuel surcharges.

Cathay Pacific surged during the afternoon session to close at HKD 13.62, up 2.79% for the day, with an intraday range of HKD 13.14 to HKD 13.76, driven primarily by the company's profit guidance for the first half of 2026. The airline expects a consolidated net profit of HKD 6.0-6.5 billion, with passenger traffic up 17% year-on-year and June passenger volume rising 12%. Citi upgraded the stock to Buy and named it top pick in APAC, raising its target price from HKD 12.6 to HKD 14.0, while BofA maintained an Underperform rating but also raised its target to HKD 12.6. The stock has gained 7.84% YTD, trading above its 20-day MA (HKD 13.071) and 60-day MA (HKD 12.567), but remains 3.75% below its 52-week high of HKD 14.15. However, elevated fuel costs and Middle East route disruptions remain headwinds.

Cathay Pacific opened higher and rallied in the morning session, closing at HK$13.57, up 4.06%, driven mainly by falling international oil prices and bullish analyst calls. HSBC Research, citing an oil price retreat as a tailwind for airlines, raised its target price on Cathay from HK$15.5 to HK$16.9. The company reported May passenger traffic up 17% YoY and cargo volume up 11% YoY. For Q4 2025, revenue reached HK$31.23 billion (+14.04% YoY), net profit hit HK$3.59 billion (+15.11% YoY), EPS was HK$0.5347 (+23.83% YoY), and ROE stood at 23.88%. The stock is now 4.1% below its 52-week high of HK$14.15, but has reclaimed both its MA20 (HK$12.44) and MA60 (HK$12.30), with YTD gains of 7.44%. Earlier pressure from Swire Pacific's HK$4.7 billion exchangeable bond issuance has faded, as lower fuel costs and solid passenger-cargo growth underpin today's gains.