Cathay Pacific Airways Ltd

00293: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
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Cathay Pacific: Convertible Bond Redemption to Have Little Valuation Impact; Fair Value Unchanged

Cheng Wang

Dec 12, 2024

After incorporating Cathay Pacific's convertible bond redemption and its operating data up to October, we made minimal changes to our forecasts and maintained our fair value estimate at CNY 9.30. Cathay's share price has risen 20% since it proposed to redeem its convertible bond in mid-November, and currently trades at a 4% premium to our fair value estimate. For investors interested in airlines, we are more in favor of ANA Holdings, currently trading at a 9% discount to our fair value estimate.

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Cathay Pacific Airways Ltd

Cathay Pacific: Convertible Bond Redemption to Have Little Valuation Impact; Fair Value Unchanged

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