Hainan Meilan Airport (HMA), as the name suggests, operates Meilan Airport on Hainan island in South China. The two main business segments of HMA, are the aeronautical (terminal facilities, ground handling and passenger services) and non-aeronautical (leasing of commercial and retail spaces, franchising of airport related business, advertising, car parking, cargo handling and sales of consumable goods) business. The International Air Transport Association (IATA) forecasts 8.2 billion air travellers in 2037, representing a CAGR of 3.5%. Region-wise, Asia-Pacific is expected to grow the fastest, at a CAGR of 4.8% with China projected to displace US as the world’s largest aviation market in terms of air traffic in the mid-2020s.
Its previous association of the HNA Group, which suffers from a crushing debt burden caused by over-expansion, has caused investors to shy away, unfairly, and therefore, pushing valuations down to levels that can’t be ignored
SINGAPORE (Jan 23): We have picked a few stocks in property, infrastructure and construction. For example, we like Hainan Meilan International Airport. Its previous association with the HNA Group, which suffered from a crushing debt burden caused by over-expansion, has perhaps caused investors to shy away unfairly. But it has also pushed valuations down to levels that can’t be ignored.
