0706 GMT - Air China, China Eastern Airlines and China Southern Airlines look overvalued, Morningstar equity analyst Cheng Wang writes in a note. The demand outlook appears "unfavorable" as passenger yields fall on cautious traveler spending and competition from high-speed rail, the analyst says. Trump's re-election will likely affect U.S.-China travel, given the potential reduction of business ties and more stringent visa requirements, and international travel for Chinese consumers could become more expensive if the yuan depreciates further due to potential tariffs, the analyst adds. Morningstar retains its fair value estimates for Air China and China Eastern, but trims it for China Southern by 3% to HK$3.85 to reflect a lower passenger yield assumption. China Southern shares are 4.8% lower at HK$3.39. (kimberley.kao@wsj.com)
(END) Dow Jones Newswires
November 11, 2024 02:06 ET (07:06 GMT)
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