Meilan Airport (00357) saw its shares drop nearly 7%, trading down 6.76% at HK$5.24 as of the time of writing, with turnover reaching HK$1.6757 million.

On the evening of August 21, Meilan Airport released its 2026 interim results, reporting total revenue of approximately RMB 1.092 billion, a year-on-year increase of 1.14%. The net loss attributable to shareholders of the parent company stood at approximately RMB 66.8786 million, narrowing by 4.73% compared to the same period last year.

Notably, Meilan Airport also disclosed two transaction matters. First, its wholly-owned subsidiary Ruigang Logistics plans to sell a 6% equity stake in Hainan Airport Holding to Hainan Airport Development. Second, the performance entity under the Haikou Meilan International Airport duty-free concession agreement will be changed to Hainan HNA CDF Duty-Free Co., Ltd.

In a commentary, Huatai Securities noted that Meilan Airport's first-half performance fell short of its expectations, primarily due to aviation demand being potentially suppressed by high oil prices and elevated fuel surcharges. The company's passenger throughput grew only modestly by 1.3% year-on-year during the period, and the overall non-aviation business has yet to show significant improvement.

Looking ahead, however, the sale of the 6% stake in Hainan Airport Holding is expected to generate approximately RMB 540 million in investment income. If the transaction is completed smoothly, the company may turn around to profitability for the full year.