Core Viewpoint - Bank of America Securities has a positive outlook on Asia-Pacific airlines for 2026, expecting profitability to be supported by sustained high ticket prices, healthy demand, improved cargo fundamentals, and potential benefits from excess oil supply [1] Group 1: Earnings Forecast - The average earnings per share forecast for Asia-Pacific airlines for 2025 to 2027 has been raised by 22% to reflect improved passenger and cargo unit revenue outlook [1] - The largest upward revision is for mainland Chinese airlines [1] Group 2: Target Price Adjustments - The average target price for Asia-Pacific airlines has been increased by 30% to reflect the earnings forecast adjustments [1] - China Eastern Airlines' target price has been raised from HKD 2 to HKD 2.9, maintaining an underperform rating [1] - China Southern Airlines' target price has been increased from HKD 3.1 to HKD 5.92, with the rating upgraded from underperform to neutral [1] - Air China’s target price has been raised from HKD 4.2 to HKD 8.3, with the rating upgraded from underperform to buy [1]

Core Viewpoint - Bank of America Securities has a positive outlook on Asia-Pacific airlines for 2026, expecting profitability to be supported by sustained high ticket prices, healthy demand, improved cargo fundamentals, and potential benefits from excess oil supply [1] Group 1: Earnings Forecast - The average earnings per share forecast for Asia-Pacific airlines for 2025 to 2027 has been raised by 22% to reflect improved passenger and cargo unit revenue outlook [1] - The largest upward revision is for airlines in mainland China [1] Group 2: Target Price Adjustments - The average target price for Asia-Pacific airlines has been increased by 30% to reflect the earnings forecast adjustments [1] - China Eastern Airlines' target price has been raised from HKD 2 to HKD 2.9, maintaining an underperform rating [1] - China Southern Airlines' target price has been increased from HKD 3.1 to HKD 5.92, with the rating upgraded from underperform to neutral [1] - Air China’s target price has been raised from HKD 4.2 to HKD 8.3, with the rating upgraded from underperform to buy [1]

Market Overview - The Hong Kong stock market experienced fluctuations today, with all three major indices closing lower. The Hang Seng Index fell by 0.29% or 76.39 points to 26,487.51 points, with a total turnover of HKD 2,377.66 million. The Hang Seng China Enterprises Index decreased by 0.43% to 9,094.76 points, and the Hang Seng Tech Index dropped by 1.16% to 5,683.44 points [1] Blue Chip Performance - Pop Mart (09992) led the blue-chip stocks, rising by 9.07% to HKD 197.2, contributing 19.52 points to the Hang Seng Index. The company announced a share buyback of 1.4 million shares for HKD 2.51 million at prices between HKD 177.7 and HKD 181.2. Morgan Stanley noted that this buyback could attract more investors [2] - Other notable blue-chip performances included China Life (601628) (02628) up 4.31% to HKD 33.4, contributing 16.6 points, and China Resources Land (01109) up 3.71% to HKD 29.64, contributing 5.52 points. Conversely, WuXi AppTec (603259) (02359) fell by 4.13% to HKD 113.7, detracting 3.73 points, and SMIC (00981) dropped by 3.25% to HKD 74.5, detracting 18.11 points [2] Sector Highlights - The technology sector showed mixed results, with Baidu rising by 0.95% while Tencent fell over 1%. Gold stocks rebounded, with spot gold surpassing USD 4,700 for the first time, and consumer stocks gained traction due to favorable consumption policies. Notably, Pop Mart's buyback led to a price increase of over 10% [3] - Gold stocks saw a recovery, with Zijin Mining International (02259) up 5.47% to HKD 179.4, Chifeng Jilong Gold Mining (600988) (06693) up 3.6% to HKD 33.94, Shandong Gold Mining (600547) (01787) up 2.73% to HKD 43.7, and China National Gold International (600916) (02099) up 2.04% to HKD 195 [3] Real Estate Sector - The National Bureau of Statistics reported a 0.3% month-on-month decline in new residential sales prices in first-tier cities for December 2025, with the decline narrowing by 0.1 percentage points from the previous month. Shenwan Hongyuan believes that the real estate sector has undergone deep adjustments, and recent central government directives to stabilize the market may lead to positive policy changes [5] - The real estate sector showed positive performance, with China Overseas Land & Investment (00081) up 4.93% to HKD 2.13, and China Resources Land (01109) up 3.71% to HKD 29.64 [4][5] Insurance Sector - The insurance sector performed well, with China Pacific Insurance (00966) up 4.39% to HKD 23.8, China Life (02628) up 4.31% to HKD 33.4, and New China Life Insurance (601336) (01336) up 2.72% to HKD 62.35. Reports indicated that major insurance companies saw significant growth in premium income through bancassurance channels [4][5] Aviation Sector - The aviation sector continued its upward trend, with China Southern Airlines (600029) (01055) up 4.57% to HKD 6.18, China National Aviation (601111) (00753) up 3.91% to HKD 7.45, and Cathay Pacific (00293) up 1.63% to HKD 12.49. Analysts expect strong demand during the upcoming Spring Festival travel season, with improved ticket pricing and revenue management driving profitability [6] Notable Stock Movements - Youjia Innovation (02431) saw a significant increase of 7.21% to HKD 15.77 after signing a memorandum of understanding with India's Sterling Tools Ltd. to focus on the automotive market [7] - Nanshan Aluminum International (02610) reached a new high, rising 6.04% to HKD 71.95, as the company plans to initiate a 250,000-ton electrolytic aluminum project with an estimated investment of USD 436.6 million [8] - GigaDevice Semiconductor (603986) (03986) continued to rise by 5.52% to HKD 306, benefiting from a tight supply of memory chips [9] - Shanghai Petrochemical (600688) (00338) issued a profit warning, expecting a net loss of approximately RMB 1.289 billion to RMB 1.576 billion for the year ending December 31, 2025 [10]

Core Insights - The article discusses the prevalent practice of airlines locking certain economy class seats, which limits consumer choice and is seen as a method for airlines to increase revenue through service tier differentiation [1][2] Group 1: Airline Practices - A survey conducted by the Jiangsu Consumer Protection Committee revealed that none of the 10 major airlines fully open all economy class seats for selection, indicating that seat locking has become a common practice in civil aviation services [1] - The airlines surveyed include Eastern Airlines, Southern Airlines, Air China, Hainan Airlines, Xiamen Airlines, Shenzhen Airlines, Shandong Airlines, Sichuan Airlines, Spring Airlines, and Juneyao Airlines [1] Group 2: Seat Locking Statistics - The proportion of locked seats during the purchasing phase varies significantly among the surveyed airlines, ranging from 19.9% to 62.1%, with an average of 38.7% [1] - Specific routes with high seat locking include Spring Airlines' "Nanjing-Lanzhou" route, which has over 60% of economy seats locked, and Shenzhen Airlines' "Shenzhen-Zhanjiang" route, with over 50% locked [1] Group 3: Consumer Concerns - Consumers have raised questions regarding the reasons for seat locking, the extent of locked seats, unlocking methods, and related rules, but airline customer service responses have been vague regarding these issues [2]

Group 1 - Hong Kong's Hang Seng Index fell by 0.04%, down 11 points, closing at 26,552 points, while the Hang Seng Tech Index decreased by 0.66% with a trading volume of HKD 129.8 billion in the morning session [1] - Pop Mart (09992) surged over 8% as the company repurchased shares worth HKD 251 million [1] - Major airlines continued to rise, with strong expectations for industry growth; China Southern Airlines (01055) increased by 3.72%, China Eastern Airlines (00670) by 4.56%, and Air China (00753) by 2.5% [1] Group 2 - Weisheng Holdings (03393) rose nearly 9%, reaching new highs as the State Grid increased its investment scale, indicating a favorable phase for smart meter investments [2] - Health Road (02587) increased by over 4% after the controlling shareholder extended the lock-up period, and the company repurchased 327,000 shares recently [3] - Blucube (00325) rose against the trend by 3.95%, benefiting from the expansion of China's trendy toy industry and the enrichment of its IP system and product matrix [4] Group 3 - Hou Shang Ayi (02589) saw a rise of over 10% as its 25-year performance forecast exceeded expectations, with net profit expected to grow by up to 60% year-on-year [5] - Gigadevice (03986) increased by over 5%, reaching a new high as Micron reported worsening shortages of memory chips, indicating that supply tightness will persist beyond this year [6] - Damai Entertainment (01060) rose over 4% after announcing its entry into the museum sector, positioning itself to benefit from the upgrading of consumer structures [7] Group 4 - The commercial aerospace sector experienced declines, with Asia Pacific Satellite (01045) dropping by 6.9% and Goldwind Technology (02208) falling by over 3% [8] - Jiayuan Ankang-B (02617) fell over 9% as it proposed a placement to raise HKD 190 million, primarily for core product development [9]

Core Viewpoint - The Eastern Airlines Jiangxi branch effectively managed the challenges posed by a cold wave in Nanchang on January 20, 2026, ensuring all flights operated normally without significant delays or cancellations due to snow and low temperatures [1][4]. Group 1: Preparation and Response - The Eastern Airlines Jiangxi branch and related units proactively planned and activated winter extreme weather contingency measures ahead of the cold wave [4]. - The operations command center closely monitored weather changes and maintained real-time communication with air traffic control and airports to assess the impact of snowfall on flight operations [4]. - The technical division completed maintenance and testing of de-icing equipment in advance, ensuring sufficient de-icing fluid was available and conducting pre-shift training for staff [4]. Group 2: Execution of De-icing Operations - De-icing operations for the first flight commenced at 5:40 AM, with personnel following a systematic process to apply warm de-icing fluid to the aircraft [7]. - The average time for de-icing each of the 11 flights was kept under 10 minutes, achieving efficiency, precision, and safety [8]. - The ground service department enhanced personnel presence to ensure safe operations and effective passenger services, including guidance and information dissemination [4][8]. Group 3: Ongoing Monitoring and Future Actions - The Eastern Airlines Jiangxi branch will continue to monitor weather conditions and adjust support plans dynamically to ensure passenger safety during travel [8].

Group 1 - Major airlines in China continue to rise, with Eastern Airlines (00670) up by 4.74% to HKD 5.97 [1] - Southern Airlines (01055) increased by 3.72% to HKD 6.13 [1] - Air China (00753) saw a rise of 2.65% to HKD 7.36 [1]

Group 1 - Heavy snowfall occurred in Jiangsu from January 19 to 20, leading to flight cancellations at Nanjing Lukou International Airport, including flights to and from cities like Zunyi, Changsha, Harbin, Chongqing, Zhuhai, and Nanning [1] - China Eastern Airlines Jiangsu Company reported minor flight delays on the morning of January 20, with staff using de-icing vehicles and manual snow removal methods to ensure safety [2][4] - A cold wave blue alert and yellow alerts for freezing and strong winds were issued by the Central Meteorological Observatory, indicating a widespread cold wave with low temperatures and snow from January 18 to 23 in Jiangsu [4]

Core Viewpoint - The three major airlines in China are experiencing a rise in stock prices, driven by increasing travel demand as universities close for holidays and commercial travel resumes, alongside a significant increase in ticket sales for the upcoming Spring Festival travel season [1] Group 1: Airline Stock Performance - China Southern Airlines (600029) shares rose by 3.21% to HKD 6.1 - China Eastern Airlines (00670) shares increased by 2.63% to HKD 5.85 - Air China (601111) shares climbed by 2.23% to HKD 7.33 [1] Group 2: Market Analysis and Forecast - Guotai Junan Securities notes that with the holiday season approaching and commercial travel recovering, there is a noticeable rebound in air travel volume and pricing [1] - The firm anticipates strong demand for the 2026 Spring Festival, with a significant increase in ticket sales [1] - The Chinese aviation supply has entered a low growth phase, and with market-driven ticket pricing, steady demand and improved revenue management by airlines are expected to drive sustainable profitability [1] Group 3: Investment Outlook - Zhongtai Securities highlights that favorable oil and exchange rates are likely to continue, coupled with the "anti-involution" initiative and the Spring Festival holiday, creating strong expectations for improved air travel volume and pricing [1] - The cyclical effect of civil aviation volume and pricing is gradually becoming evident, with high passenger load factors and industry initiatives expected to drive industry prosperity beyond expectations [1] - The firm maintains a positive outlook on investment opportunities in the aviation sector [1]

Group 1 - The core view of the report is a positive outlook for Asia-Pacific airlines by 2026, driven by sustained high ticket prices, healthy demand, improved cargo fundamentals, and potential benefits from excess oil supply [1] - The report raises the average earnings per share forecast for Asia-Pacific airlines from 2025 to 2027 by 22%, reflecting improved passenger and cargo unit revenue outlooks, with the largest upward adjustment for mainland Chinese airlines [1] Group 2 - The target price for China Eastern Airlines is raised from HKD 2 to HKD 2.9, maintaining a "Underperform" rating [1] - The target price for China Southern Airlines is increased from HKD 3.1 to HKD 5.92, with the rating upgraded from "Underperform" to "Neutral" [1] - The target price for Air China is raised from HKD 4.2 to HKD 8.3, with the rating upgraded from "Underperform" to "Buy" [1]