0293.HK Stock Today: March 11 – FY25 Profit Up 9.5%, Dividend Hiked

Cathay Pacific earnings are in focus today after FY25 net profit reached HK$10.83 billion, up 9.5% year over year, on 11.9% higher revenue. The board raised the second interim dividend 30.6% to HK$0.64, taking the full-year payout to HK$0.84. Management targets roughly 10% passenger capacity growth in 2026 with eight new narrowbody deliveries. It also granted staff bonuses and profit-share equal to over 11 weeks’ pay. We break down what this means for Hong Kong investors, the share price, valuation, the dividend, and the near-term outlook.

FY25 results and dividend

Net profit came in at HK$10.83 billion, up 9.5% year over year, as revenue rose 11.9%. Profit growth lagged revenue due to cost inflation and yield mix. Still, margins held up, supported by steady passenger demand and resilient cargo. These results underpin stronger cash flow and balance sheet repair, giving room for higher distributions without stretching leverage versus last year’s levels.

The board lifted the second interim dividend 30.6% to HK$0.64, bringing full-year dividends to HK$0.84 per share. At yesterday’s close of HK$13.17, that implies a roughly 6.4% trailing yield. Management framed the increase as sustainable with ongoing recovery. Local media confirmed the profit and dividend details: see Yahoo Finance HK [source].

Cathay also announced staff profit-share and bonuses totaling more than 11 weeks’ pay, reinforcing confidence in the recovery and easing retention pressures in a tight talent market. This step can support service quality, on-time operations, and network rebuild. Local coverage highlighted the award to eligible staff, which we see as a sign of management’s constructive read on demand and cash flows source.

Share price and valuation check

0293.HK traded at HK$13.17, up 8.13% on the day, with a range of HK$12.70 to HK$13.36. The 52-week range is HK$8.50 to HK$14.15. RSI sits near 47, and ADX near 22 points to a modest trend. Bollinger Bands center at HK$13.00. We would watch HK$13.85 (upper band) as near-term resistance and HK$12.16 (lower band) as first support.

Earnings per share are HK$1.41, implying a P/E of 8.95 and P/B of about 1.63. Enterprise value to EBITDA is roughly 6.75. Market cap stands near HK$84.86 billion. Free cash flow yield is healthy on our data. Relative to historical cycles, these measures suggest the stock is not expensive if earnings and cash generation hold through 2026.

Outlook: growth drivers to 2026

Management guides around 10% passenger capacity growth in 2026, supported by eight new narrowbody deliveries. Added seats on short and medium routes should lift utilization and unit revenue, while newer aircraft can trim fuel burn per seat. We expect further network rebuild into the Mainland, Southeast Asia, and key long-haul lanes as slots and crew availability improve.

Passenger demand remains supported by regional travel and improving corporate traffic. Cargo has normalized from pandemic highs but stays stable with e-commerce and high-value goods. Balanced growth across cabins and freight can smooth earnings through cycles. Execution on scheduling, turnaround times, and on-time performance will be key to protect yields and keep costs in line.

Risks and what to watch

Fuel prices and hedging outcomes remain the main swing factors for margins. Geopolitical tensions and reroutes can raise costs and pressure schedules, which may affect yields. FX moves also matter for USD-linked expenses. We would track monthly traffic updates, load factors, and unit revenue to gauge how Cathay Pacific earnings trend against cost inflation in 2025–2026.

Upcoming catalysts include traffic statistics, fleet delivery milestones, and any cargo demand uptick. Our system shows a Stock Grade of B+ (score 76.53) with a BUY suggestion, while our latest company rating on 10 March 2026 is A- (Buy). If delivery timelines hold and yields stay firm, valuation could re-rate toward the HK$15–HK$20 long-run projections.

Final Thoughts

Cathay Pacific earnings show steady progress: profit rose 9.5% to HK$10.83 billion, revenue climbed 11.9%, and the full-year dividend increased to HK$0.84. Management is investing in people and aircraft, aiming for about 10% passenger capacity growth in 2026 with eight narrowbody arrivals. For Hong Kong investors, the setup combines a reasonable P/E near 9, solid cash flow, and an attractive yield based on the new payout. Key risks are fuel, routes affected by geopolitics, and yield softness if capacity ramps too fast. Our take: consider building or adding on dips near support, while watching monthly traffic, fuel hedging, and fleet delivery updates for confirmation. Position size with discipline and keep a close eye on operating metrics.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.