Core Viewpoint - The new regulation from the Civil Aviation Administration of China prohibits passengers from carrying power banks without the 3C certification on domestic flights, effective from June 28. Airports in Beijing are now offering temporary storage services for power banks that do not meet these requirements, allowing travelers to store them for up to 7 days [1]. Group 1: Regulation and Compliance - The new regulation bans power banks without clear 3C certification, recalled models, or unclear labeling from being taken on board domestic flights [1]. - Passengers can voluntarily abandon non-compliant power banks or send them home via courier services available at the airport [1]. - Airports are required to set up reasonable areas for passengers to abandon or temporarily store power banks, enhancing understanding and compliance with the policy [1]. Group 2: Airport Services - Both Capital Airport and Daxing Airport provide free temporary storage services for power banks, with a maximum storage period of 7 days [1]. - At Capital Airport, the storage locations are at the T3 Passenger Service Center on the first floor of the parking garage and the T2 Passenger Service Center in the basement of Terminal 2 [1]. - Daxing Airport also offers courier and temporary storage services, with passengers able to store their power banks for up to 7 days at the JD Express point outside the domestic departure security area [1].

Investment Rating - The industry investment rating is "Positive" [5] Core Insights - The overall passenger load factor remains high, indicating a recovery in demand compared to the previous year [1][9] - Domestic airlines have increased capacity by 2.8% year-on-year and 4.8% month-on-month in May, driven by seasonal demand from the May Day holiday [2][13] - The passenger load factor for domestic routes improved by 0.6 percentage points month-on-month and approximately 2.8 percentage points year-on-year [29][37] - International routes saw a 20.3% year-on-year increase in capacity, although the growth rate has slowed due to a higher base from the previous year [4][48] - The overall load factor for international routes increased by 3.4 percentage points year-on-year, despite a 1.1 percentage point decrease month-on-month [4][48] Summary by Sections Domestic Routes - Capacity for domestic routes increased by 2.8% year-on-year and 4.8% month-on-month in May, with major airlines showing over 5% growth in capacity due to seasonal factors [2][14] - The overall passenger load factor for domestic airlines rose to 92% in May, recovering from a dip below 90% in April [36][43] - Major airlines have stabilized their ticket sales strategies, contributing to a more predictable pricing environment [3][10] International Routes - International capacity increased by approximately 20.3% year-on-year, with a 1.0% increase month-on-month, indicating a gradual recovery [4][48] - The load factor for international routes improved significantly year-on-year, primarily due to a low base from the previous year [4][48] - The industry anticipates continued pressure on international routes due to capacity management in domestic routes, which may lead to an oversupply situation [50] Airport Throughput - Major airports such as Shanghai and Shenzhen reported significant year-on-year increases in international passenger throughput, with growth rates of 25% and 31% respectively [55][63] - Compared to 2019, international throughput at these airports has also shown strong recovery, indicating a robust rebound in international travel [55][63]

Group 1 - The price of light crude oil futures for July delivery on the New York Mercantile Exchange fell by $0.64, closing at $60.89 per barrel, a decrease of 1.04% [1] - The price of Brent crude oil futures for July delivery dropped by $0.65, closing at $64.09 per barrel, a decline of 1.0% [1] - Goldman Sachs forecasts that the international benchmark for crude oil, Brent, and the North American pricing benchmark, WTI, will be more subdued and persistently weak compared to the current low point in 2025-2026 [1] Group 2 - China International Capital Corporation (CICC) predicts that tariffs may further suppress the growth rate of supply in China's civil aviation industry, estimating an average annual growth rate of approximately 3.1% for passenger capacity (available seat kilometers) from 2025 to 2028, compared to 15.4% from 2009 to 2019 [1] - The average annual growth rate for passenger aircraft in the industry is expected to be only 2.8% during the same period [1] - The significant drop in oil prices since 2025 is expected to improve the cost structure for airlines, providing a solid foundation for the initiation of an aviation cycle, with potential for substantial profit elasticity for airlines if the cycle turns upward [1] Group 3 - Leading companies in the aviation sector include China Eastern Airlines (00670), China Southern Airlines (600029), Air China (601111), Capital Airport (00694), and China Civil Aviation Information Network (00696) [2]

Group 1: Aviation Industry - The aviation industry in China is expected to benefit from the easing of US-China trade tensions and improving supply-demand dynamics, leading to enhanced pricing power [2][1] - Recommended stocks include China National Aviation (00753), Eastern Airlines (00670), Southern Airlines (01055), and Spring Airlines (601021.SH) [2] - Guangzhou Baiyun Airport (600004.SH) is favored as a defensive choice due to its lower exposure to duty-free business and high dividend yield amid consumer pressure [2][1] Group 2: Shipping Industry - Geopolitical factors are impacting freight rates, but oversupply of capacity remains a primary concern for the next 12 to 24 months [3] - The oil tanker segment is expected to benefit from OPEC+ production increases and tighter regulations on "shadow fleets," with recommendations to increase holdings in China Merchants Energy (601872.SH) and COSCO Shipping Energy (01138) [3] - For dry bulk shipping, Pacific Basin Shipping (02343) is recommended for its stable shareholder returns, while container shipping stocks like COSCO Shipping Holdings (01919) and Orient Overseas International (00316) are advised to be reduced [3] Group 3: Express Delivery Industry - The express delivery sector is anticipated to face intensified price competition and ongoing industry consolidation from 2025 onwards [4] - ZTO Express (ZTO.US) is viewed as the most promising stock in the next 12 to 24 months, while SF Express (002352.SZ) shows strong profit growth potential [4] - Companies leveraging artificial intelligence, such as ZTO, SF Express, and YTO Express (600233.SH), are also highlighted for their growth prospects [4]

Investment Rating - The industry investment rating is "Positive" [4] Core Insights - The domestic airline industry has shown a significant improvement in passenger load factors during the off-peak season, with a year-on-year increase of approximately 3.2% in April [2][28] - Spring Airlines has notably increased its capacity for domestic routes, with a year-on-year growth of 11.2% in April, indicating a strategic shift in focus towards domestic operations [2][20] - The overall capacity for domestic routes increased by 2.3% year-on-year, while international routes saw a substantial capacity increase of 26.5% year-on-year, primarily due to a low base from the previous year [3][50] Summary by Sections Domestic Routes - In April, the overall capacity for domestic routes among listed airlines remained stable compared to March, with a year-on-year increase of 2.3% [12][17] - Major airlines showed little change in capacity, but Spring Airlines significantly increased its domestic capacity, while Juneyao Airlines reduced its domestic capacity by 10.3% due to a shift towards international routes [2][13] - The overall passenger load factor for domestic routes improved by 0.8 percentage points month-on-month and by approximately 3.2 percentage points year-on-year, indicating a better supply-demand relationship [28][35] International Routes - The capacity for international routes increased by about 26.5% year-on-year in April, with a month-on-month increase of 3.6% [3][50] - The passenger load factor for international routes improved by 1.4 percentage points month-on-month and by 1.0 percentage point year-on-year, slightly exceeding expectations [3][50] - The report maintains a cautious outlook for international routes, anticipating continued pressure due to supply constraints from domestic route management [3][50] Airport Throughput - Major airports reported significant year-on-year increases in international passenger throughput, with Shanghai and Shenzhen airports showing growth rates of 24% and 38%, respectively [58][63] - Compared to 2019, international throughput at these airports has also shown recovery, with Shenzhen airport achieving 120% of its 2019 levels [58][63]

Core Viewpoint - The company has agreed to acquire assets related to the renovation of the west runway at Beijing Capital Airport for a total price of RMB 327 million, which is subject to adjustments [1][2]. Group 1: Asset Acquisition Details - The assets include the renovated runway surface and shoulders, navigation lighting systems, and related auxiliary equipment [1]. - The acquisition is part of a project approved by the Civil Aviation Administration of China in 2019, designating the parent company as the project entity [2]. - The company will temporarily use the assets starting from the end of October 2020 without paying usage fees until the ownership transfer is finalized [1][2]. Group 2: Importance of the Assets - The west runway, built in 1980 and last resurfaced in 2000, has deteriorated due to increased air traffic and age, necessitating major renovations to ensure safety [2]. - The acquisition of these assets is expected to enhance the performance and lifespan of the west runway, thereby improving flight safety at Beijing Capital Airport [2]. - This acquisition aligns with the company's interests by clarifying asset ownership and enhancing operational efficiency and safety at the airport [2].

港股航空股盘中持续走强，中国国航(00753.HK)、中国东方航空股份(00670.HK)均大涨超8.5%，南方航 空(600029.SH)涨超8%，北京首都机场(00694.HK)涨超4%，国泰航空(00293.HK)涨超2%。 ...

Group 1 - Hong Kong aviation stocks experienced a significant rise at the beginning of trading, with China National Aviation (00753.HK) increasing by over 6% [1] - China Southern Airlines (01055.HK) and Beijing Capital International Airport (00694.HK) both saw gains of over 4%, while China Eastern Airlines (00670.HK) rose nearly 4% [1] - The appreciation of Asian currencies during the May Day holiday is expected to help airlines reduce transportation costs [1]

Financial Performance - The company reported unaudited operating revenue of RMB 1,344,515,823.01 for the three months ended March 31, 2025, a slight increase from RMB 1,330,855,660.89 in the same period of 2024[7]. - The operating loss for the same period was RMB 121,976,307.89, an improvement compared to the operating loss of RMB 149,573,723.26 in 2024[7]. - The company's net loss for the three months ended March 31, 2025, was RMB 125,010,235.85, compared to a net loss of RMB 149,170,603.57 in 2024[7]. Assets and Liabilities - Total assets as of March 31, 2025, amounted to RMB 31,543,036,247.40, an increase from RMB 30,675,356,744.13 as of December 31, 2024[5][6]. - Current assets increased to RMB 4,024,106,986.36 from RMB 2,929,413,239.06 in the previous year[5]. - Total liabilities increased to RMB 18,212,168,438.13 from RMB 17,219,478,699.01 in the previous year[6]. - The company’s total equity decreased slightly to RMB 13,330,867,809.27 from RMB 13,455,878,045.12 as of December 31, 2024[6]. - The company’s long-term investments remained stable at RMB 41,464,419.58 as of March 31, 2025[5]. Cash Flow - Operating cash flow for the three months ended March 31, 2025, was RMB 420,342,087.48, a significant improvement compared to a negative cash flow of RMB 113,296,349.42 in the same period of 2024[8]. - Cash inflow from financing activities was RMB 2,623,610,511.72, down from RMB 2,911,381,058.72 in the previous year[9]. - Net cash flow from financing activities decreased to RMB 518,568,753.93 from RMB 613,294,291.37 year-over-year[9]. - Total cash and cash equivalents at the end of the period reached RMB 2,283,843,079.16, compared to RMB 1,597,981,706.07 at the end of the same period last year[9]. - Cash outflow for purchasing goods and services was reduced to RMB 523,110,059.85 from RMB 1,061,497,508.61 in the previous year[8]. - Cash outflow for fixed assets and other long-term assets was RMB 83,260,432.59, a decrease from RMB 185,717,756.68 in the same period of 2024[8]. - Cash received from operating activities totaled RMB 1,211,783,797.83, compared to RMB 1,255,032,078.88 in the previous year[8]. - Cash paid to employees decreased to RMB 233,993,033.94 from RMB 262,140,281.64 year-over-year[8]. - The impact of exchange rate changes on cash and cash equivalents was a negative RMB 24,177.69, contrasting with a positive impact of RMB 34,073.90 in the previous year[9]. - Cash flow from investment activities showed a net outflow of RMB 82,741,385.32, compared to RMB 183,856,168.47 in the same period of 2024[8]. Financing Activities - The company issued RMB 1.5 billion of three-year medium-term notes in September 2023[3].

Financial Performance - Revenue for 2024 reached RMB 5,492,205,000, a 20.5% increase from RMB 4,558,524,000 in 2023[9] - EBITDA for 2024 was RMB 1,174,537,000, compared to RMB 135,845,000 in 2023, marking a significant recovery[9] - The company reported a net loss of RMB 1,389,745,000 for 2024, an improvement from a loss of RMB 1,696,788,000 in 2023[9] - The company's operating revenue for 2024 was approximately RMB 5,492,205,000, a year-on-year increase of 20.5%[23] - Aviation revenue amounted to RMB 2,667,662,000, reflecting a growth of 27.2% year-on-year, while non-aviation revenue was RMB 2,824,543,000, up 14.7%[23] - The company's annual net loss for the fiscal year ending December 31, 2024, was RMB 1,389,745,000, representing an improvement of approximately 18.1% from the previous year's loss[139] - The company's operating expenses for 2024 were RMB 5,856,756,000, a decrease of about 1.0% from the previous year despite rising costs due to increased business volume[127] - The company's depreciation and amortization expenses decreased by approximately 2.6% to RMB 1,509,409,000 due to adjustments in the estimated useful life of certain assets[134] Operational Highlights - The company operated 51 airlines at Beijing Capital Airport by the end of 2024, serving 227 destinations across 54 countries and regions[12] - In 2024, the total number of aircraft takeoffs and landings at Beijing Capital Airport reached 433,572, an increase of 14.2% year-on-year[19] - Passenger throughput for the year was 67,367,428, representing a growth of 27.4% compared to the previous year[19] - Cargo and mail throughput totaled 1,443,286 tons, marking a 29.3% increase year-on-year[19] - The international passenger throughput saw a significant increase of 103.0%, reaching 12,549,141[129] Strategic Initiatives - The introduction of upgraded fast-line products in collaboration with major airlines improved operational efficiency[18] - New differentiated services such as "Home Away from Home" and "Worry-Free Flight Delay" were launched to improve customer experience[18] - The company plans to continue enhancing service quality and operational efficiency in 2025[16] - The company aims to expand its international route network and enhance its competitive position in the global aviation market[29] - The company is committed to sustainable development by increasing the proportion of renewable energy at Beijing Capital Airport[29] Governance and Leadership - The company appointed a new board of directors on June 20, 2023, with terms lasting until the 2025 annual general meeting[100] - The company announced the appointment of Han Zhiliang as the new general manager and Li Zhiyong as the chief financial officer on June 20, 2023[100] - The board of directors includes members with backgrounds in finance and management, which may contribute to sound financial decision-making[105] - The company has a strong leadership team with diverse backgrounds in law, finance, and engineering, enhancing its operational capabilities[115][116][117][118][119][120] Compliance and Risk Management - The company has a strict compliance framework to adhere to significant laws and regulations impacting its operations[39] - The company has implemented a risk management and internal control system to mitigate legal and reputational risks[39] - The company confirms that all related party transactions comply with the relevant regulations under the listing rules, ensuring fair pricing and terms[83] Shareholder Information - The company reported a cumulative loss of RMB 4,380,344,000 as of December 31, 2024, with no distributable reserves available for dividends[48] - The company has not declared any final dividends for the fiscal year ending December 31, 2024[54] - As of December 31, 2024, the total issued share capital of the company is 4,579,178,977 shares, with H shares accounting for 1,879,364,000 shares and domestic shares for 2,699,814,977 shares[84] Employee and Workforce - The total number of employees decreased to 1,516 in 2024 from 1,542 in 2023[146] - The company has a total of 1,018 male employees, accounting for approximately 67.2%, and 498 female employees, accounting for about 32.8%[160] Future Outlook - The management remains optimistic about future growth prospects as the aviation industry continues to recover post-pandemic[127] - The company plans to continue focusing on cost reduction measures while enhancing operational efficiency in the coming year[127] - The company will continue to explore merger and acquisition opportunities to achieve diversification and growth[113]