DBS: Raise target price of CHINA EAST AIR (00670) to 3.1 Hong Kong dollars, Maintain "Hold" rating.

DBS Bank released a research report stating that China Eastern Airlines (00670) is still facing pressure on its domestic and international passenger yield due to weak consumer willingness to spend and intensified competition from the expansion of high-speed rail networks. However, as the oil prices soften and the US dollar weakens, the company's operating costs have significantly decreased, leading to the expectation that the company's profitability will improve. The bank also mentioned that the May Day tourism trend indicates that demand is increasing, making the company's short-term prospects more optimistic. The bank has raised the company's profit forecast for the next two years by 26% and 42% respectively, maintaining a "hold" rating, with the target price raised from 2.4 Hong Kong dollars to 3.1 Hong Kong dollars.