|Bid||1.1720 x 1579000|
|Ask||1.2142 x 1534400|
|Day's Range||1.1700 - 1.2032|
|52 Week Range||1.0800 - 1.6000|
|Beta (3Y Monthly)||0.68|
|PE Ratio (TTM)||70.78|
|Forward Dividend & Yield||0.04 (3.69%)|
|1y Target Est||N/A|
Strategist at Everbright Sun Hung Kai expects Cathay Pacific will weather the storm it unexpectedly flew into when it got caught up in Hong Kong’s protests, but says investors should wait for the stock to fall again before buying.
Cathay Pacific is the leading airline in Hong Kong. Its CEO Rupert Hogg is resigning after a tumultuous week for the airline. Yahoo Finance's Julie Hyman, Adam Shapiro, Brian Cheung and Pras Subramanian discuss.
Aug.12 -- Luya You, transportation analyst at Bocom International, talks about the prospects for Cathay Pacific Airways Ltd. Bocom has downgraded Cathay's stock to "neutral" from "buy" and cut the target price by 30% to HK$11.17, citing near-term uncertainty after protests in Hong Kong affect the local aviation industry. You speaks with David Ingles, Tom Mackenzie and Stephen Engle on "Bloomberg Markets: Asia."
(Bloomberg) -- The analyst who issued a report warning investors to dump shares of embattled Cathay Pacific Airways Ltd. before they tumble to their lowest levels since 1998, is getting a lot of blowback after his controversial call.“Never before in my 12 years of investment analyst career have I received this much pressure on a particular stock rating,” Zhao Dongchen, who last week issued his inaugural report on Cathay with a “strong sell,” said in an emailed response to Bloomberg queries. “Never before in my 36 years of life am I under such heavy pressure.”Zhao, who’s head of equity research at the investment-banking arm of state-run giant Industrial & Commercial Bank of China Ltd., issued his report as Cathay was under fire from China and facing boycotts from government-run businesses because the carrier’s employees joined the anti-Beijing protests in Hong Kong. No other analyst is advising investors to sell Cathay and Zhao’s HK$6 target price is more than 40% below the stock’s current price.“We have one of China’s biggest state banks issuing an especially bearish and unusual sell recommendation on a private company in H.K. that is already the target of the Chinese state,” said George Magnus, a former UBS Group AG chief economist and author of “Red Flags: Why Xi’s China Is in Jeopardy.” “You don’t have to try hard to conclude that the interests of Chinese state banking institutions and the government are closely aligned.”Since Zhao’s report, which preceded the abrupt resignation of Cathay’s chief executive officer, shares of Hong Kong’s flag carrier have rebounded 4.7%, making them the sixth-best-performer among 64 listed global airlines tracked by Bloomberg.The shares closed 1.4% lower at HK$10.26 in Hong Kong on Friday, marking its fourth straight day of declines.Meanwhile, Zhao has been facing pressure to cancel or delay interviews, change his rating or target price, and refrain from issuing research updates on Cathay since his Aug. 13 report, he said. “A lot of people” tried to persuade him to “go easy” on the company, Zhao said.Still, nobody influenced the report or its timing, and he stands by the call, Zhao said. He said that his research was independent and that people shouldn’t unfairly single out Chinese banks for having state ties because so do lenders in places like the U.K. and Singapore.In his report, entitled “Less Deserved to Fly,” Zhao criticized the Hong Kong carrier for potentially causing “irreversible damage” to the company’s brand because of “poor crisis management” in relation to the protests. The report said that a large-scale management reshuffle would be an “upside risk” for the company.“My strong sell rating is based on the difference between Cathay’s stock price and our target price,” he said. “Simple as that.” He said he won’t shy away from a “shock rating” as he believes contrarian reports to be more helpful to investors.Zhao said Cathay currently trades at a premium to other airlines in Asia, which he believes will “evaporate” because of factors ranging from the unrest in Hong Kong to the effects of the U.S.-China trade war on global commerce.Also, the airline’s management team has shown a “severe lack of composure” in dealing with crises, including a recent data breach and problems with the Chinese regulator, Zhao said.So what’s Zhao’s advice for Cathay now?“Be a better company,” he said.Cathay Pacific declined to comment.Zhao, who typically focuses on raw materials research, runs a team of 21 equity analysts covering 8 sectors at Hong Kong-based ICBC International.Zhao’s primary expertise lies away from airlines, with the analyst voted number one for China energy research by Institutional Investor this year, according to ICBC. He started covering Cathay for ICBC International only in March, though he said he has kept a close watch on industries such as transportation.In 2006, when he first started out in a mutual fund, Zhao said he covered airlines for about three months. “To me, the airlines sector has never been a stranger,” he said.Yet Zhao stands alone among his peers in his bearish view of Cathay. Of the 19 analysts tracked by Bloomberg, 13 have the equivalent of a buy rating and 5 have holds.“Strong sell is the wrong rating on the stock at the moment,” said Mark Webb, an analyst at GMT Research in London who previously covered the stock for 18 years at HSBC Holdings Plc. “Only a significant deterioration in the situation in Hong Kong would make it go significantly lower from here.”Asked why Zhao appears to only assign his harshest ratings to foreign companies such as Rio Tinto Plc, Vale SA and BHP Group Ltd, while only giving buy ratings for Chinese companies such as Shandong Gold Mining Co., Zhao said:“I did just issue a strong sell rating on Cathay Pacific, didn’t I? That’s a Hong Kong-incorporated company, not a foreign one.”(Updates Cathay share prices in fifth, sixth paragraphs)To contact Bloomberg News staff for this story: Evelyn Yu in Shanghai at firstname.lastname@example.org;Gregor Stuart Hunter in Hong Kong at email@example.comTo contact the editors responsible for this story: Young-Sam Cho at firstname.lastname@example.org, ;Christopher Anstey at email@example.com, Christopher JasperFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Walking a tightrope between anti-government protests and political masters in Beijing, many Hong Kong firms are opting to toe the Communist Party line to avoid potential repercussions having seen what happened at Cathay Pacific Airways. Last week the airline lost its CEO after Beijing exerted political pressure, and on Friday the head of Cathay Dragon's Airlines Flight Attendants' Association said she was fired, without explanation, after managers saw and confirmed her Facebook account. One Hong Kong-based worker of a Chinese state-owned enterprise recently bragged in a WeChat chat group that he had been reporting employees who posted pro-democracy comments regarding the protests to human resources.
Cathay Pacific Airways , which is caught in the crosswinds between authorities in Beijing and anti-government protesters in Hong Kong, must put an end to "all forms of white terror", trade unions in the Chinese-ruled city said on Friday. The Hong Kong Confederation of Trade Unions (HKCTU) called a news conference after the sudden dismissal of Rebecca Sy, the head of Cathay Dragon's Airlines Flight Attendants' Association, after a 17-year career.
In its July traffic report dated Aug. 21, Cathay Pacific Airways (OTCMKTS: CPCAY) announced that the protests in Hong Kong were likely to result in "a much more significant impact" to August's revenue. Anti-government demonstrations began more than two months ago as protesters took to the streets of Hong Kong to show opposition to the Chinese extradition bill. Hong Kong International Airport, the world's busiest air cargo hub in 2018, saw multiple days of disruption as it became a venue for the movement causing Cathay Pacific to cancel nonessential travel.
HONG KONG/SINGAPORE (Reuters) - Cathay Pacific Ltd needs to focus on safety and security, its customers and the completion of a three-year financial turnaround plan, the airline's new chief executive told staff on Monday. Augustus Tang took the top job at the airline following the sudden exit of Rupert Hogg on Friday amid mounting Chinese scrutiny over the involvement of some of the Hong Kong carrier's staff in anti-government protests in Hong Kong. Hogg's departure highlights growing pressure on the corporate sector in the Chinese-controlled former British colony, where Beijing is trying to quell protests that have gone on for 11 straight weeks.
Rupert Hogg, CEO of airline Cathay Pacific (HKEX: 00293) has resigned from his positions as CEO and executive director with effect from Monday August 19. Paul Loo, Chief Customer and Commercial Officer and executive director, has also resigned his positions with effect from Monday August 19. The company has said, in a release to the Hong Kong Stock Exchange, that both men are not aware of any matter relating to their resignation that needs to be brought to the attention of the shareholders of the company.
HONG KONG/SINGAPORE (Reuters) - Cathay Pacific Airways CEO Rupert Hogg resigned in a shock move on Friday, amid mounting Chinese regulatory scrutiny of the Hong Kong carrier over the involvement of its employees in the city's anti-government protests. The sudden departure signals growing pressure on the corporate sector in the Chinese-controlled former British colony, home to multinationals such as HSBC Holdings and Jardine Matheson Holdings, to support Beijing. Cathay Pacific, which has already terminated two pilots for engaging in illegal protests at the behest of the Chinese aviation regulator, named Augustus Tang as its new CEO.
HONG KONG/SINGAPORE Aug 16 (Reuters) - Cathay Pacific Airways CEO Rupert Hogg resigned in a shock move on Friday, amid mounting Chinese regulatory scrutiny of the Hong Kong carrier over the involvement of its employees in the city's anti-government protests. The sudden departure signals growing pressure on the corporate sector in the Chinese-controlled former British colony, home to multinationals such as HSBC Holdings and Jardine Matheson Holdings, to support Beijing.
The boss of Hong Kong carrier Cathay Pacific Airways quit on Friday, the highest-profile corporate casualty of unrest roiling the former British colony, after Beijing targeted the airline over staff involvement in mass protests. Demonstrators say they are fighting the erosion of the "one country, two systems" arrangement that has enshrined some autonomy for Hong Kong since China took it back from Britain in 1997. Several thousand protesters gathered peacefully at a downtown park on Friday for the "Stand with Hong Kong, Power to the People" rally, which had received police permission.
The CEO of Cathay Pacific Airways has resigned following pressure by Beijing on the Hong Kong carrier over participation by some of its employees in anti-government protests.
Cathay Pacific CEO Rupert Hogg and another senior executive resign following accusations they didn't do enough to stop workers from participating in the pro-democracy demonstrations that have gripped the city-state over the past 10 weeks-- including a massive protest that shuttered Hong Kong's airport last weekend.
Hong Kong’s airport authority has obtained an interim injunction to stop protests at the airport and restricted non-travellers from entering after a rally at the aviation hub on Tuesday night erupted into violent clashes with police. The anti-government demonstrations at the airport, which have run for six successive days, are the latest chapter in Hong Kong’s worst political crisis since the handover of the territory from the UK to China in 1997.
HONG KONG/BEIJING (Reuters) - Cathay Pacific Airways has terminated the employment of two pilots, the company said on Wednesday, after it suspended them in the past week over their involvement in protests in Hong Kong. "In response to media enquiries, Cathay Pacific confirms that two pilots have been terminated in accordance with the terms and conditions of their employment contracts," the Hong Kong-based airline said in an e-mailed statement. "One is currently involved in legal proceedings.
Flight check-in services have been suspended at Hong Kong's international airport, the airport authority said on Tuesday, citing disruptions caused by anti-government protests. The Airport Authority (AA) halted all flights to and from the airport on Monday, and flag carrier Cathay Pacific Airways Ltd said on Tuesday it had suspended all check-ins. "Terminal operations at Hong Kong International Airport have been seriously disrupted as a result of the public assembly at the airport today," the AA said, adding that check-in service for departing flights has been suspended since 4:30 pm local time.
SINGAPORE/HONG KONG (Reuters) - The top shareholder and manager of Cathay Pacific Airways condemned protests in Hong Kong and vowed to follow China's aviation regulations, after the airline suspended a second pilot on Tuesday as deepening unrest hit its operation and stock. Cathay, whose strong British links make it a symbol of Hong Kong's colonial past, has emerged as the highest-profile corporate target as Beijing looks to quell protests in the territory that have gone on for ten straight weeks. Shares in the Hong Kong flag carrier sunk to a 10-year low, hit by concerns that Beijing could slap further sanctions on the airline, causing more damage to its brand.
SINGAPORE/HONG KONG, Aug 13 (Reuters) - The top shareholder and manager of Cathay Pacific Airways condemned protests in Hong Kong and vowed to follow China's aviation regulations, after the airline suspended a second pilot on Tuesday as deepening unrest hit its operation and stock. Cathay, whose strong British links make it a symbol of Hong Kong's colonial past, has emerged as the highest-profile corporate target as Beijing looks to quell protests in the territory that have gone on for ten straight weeks.
BEIJING/HONG KONG, Aug 13 (Reuters) - Hong Kong flag carrier Cathay Pacific Airways said it had suspended with immediate effect on Tuesday a second officer operating flight CX216 for misuse of company information, and had also commenced internal disciplinary proceedings. The airline got caught in the tussle between Beijing and pro-democracy groups in the Asian financial hub on Friday after China's civil aviation regulator demanded the airline suspend personnel who engaged in or supported illegal protests in Hong Kong from staffing flights into its airspace. The airline over the weekend moved to comply with the demand from the Civil Aviation Administration of China (CAAC), suspending a pilot arrested during anti-government protests in Hong Kong and firing two airport employees citing misconduct.
The chief executive of Hong Kong’s Cathay Pacific Airways warned Monday there will be “disciplinary consequences” for employees involved in “illegal protests,” as the airline joins a slate of businesses that have appeased and apologized to China in recent days.
Hong Kong International Airport canceled all passenger flights slated for Monday, August 12 after a growing number of protestors flooded the building. The airport is the busiest air cargo terminal in the world, and the cancellations could have a marked impact on cargo. The cancellations came after a weekend of peaceful demonstrations at the airport and more violent protests throughout the city.