Cathay+ratio - Bloomberg Printer-Friendly Page

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Bloomberg Printer-Friendly Page .. 1 of 2 8/15/2008 11:08 AM Cathay at 14 Times Profit Excludes China Revaluation (Update2) By Wendy Leung Aug. 5 (Bloomberg) -- Cathay Pacific Airways Ltd. is getting an unanticipated benefit from record jet-fuel costs that have helped push the shares down almost 30 percent this year. Hong Kong's largest airline flew 14 percent more passengers in the first half as higher fuel bills put cut-rate carrier Oasis Hong Kong Airlines Ltd. out of business. Cathay's Chinese routes helped make the company's sales growth the second-fastest among the 13 airlines in the Bloomberg Asia Pacific Airlines Index , behind Australia's Virgin Blue Holdings Ltd. The shares fell to their lowest valuation in almost two years on July 2 after the company said it couldn't predict the impact on earnings of a doubling in jet-fuel prices. The decline left Cathay valued at 14 times estimated 2008 profit, compared with an average of 16 for the index. ``The airline has almost reached the bottom,'' said Winson Fong , who oversees about $3 billion at SG Asset Management in Hong Kong. ``The stock is getting cheap and is becoming attractive for a long-term
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This note was uploaded on 04/03/2010 for the course FINA FINA111 taught by Professor Lynnpi during the Spring '09 term at HKUST.

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Cathay+ratio - Bloomberg Printer-Friendly Page

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