Group 1 - The State Intellectual Property Office of China has published a patent application by China Civil Aviation Information Network Co., Ltd. for a method, system, device, and storage medium for data persistence configuration, with publication number CN119861959A and application date of December 2024 [1] - The patent aims to address the technical issue in existing configuration management methods that require service restarts after configuration modifications, by constructing a ConfigMap object containing configuration file content and dynamically monitoring it for updates [1] - The company has a registered capital of 292,620.9589 million RMB and has invested in 39 enterprises, participated in 2,286 bidding projects, and holds 1,840 patent records [2]

Financial Performance - The company achieved total operating revenue of RMB 8.823 billion for the year ended December 31, 2024, representing a year-on-year growth of 26.3%[11]. - Net profit attributable to shareholders reached RMB 2.074 billion, an increase of 48.3% compared to the previous year[11]. - Earnings per share (EPS) was RMB 0.71, reflecting a year-on-year growth of 47.9%[11]. - Total assets increased to RMB 29.695 billion, up from RMB 27.500 billion in the previous year[14]. - Total liabilities rose to RMB 6.798 billion, compared to RMB 6.482 billion in the previous year[14]. - The company reported credit impairment losses of RMB 114.0 million in 2024, primarily due to provisions for overdue receivables from third-party customers[47]. - The company's total operating costs for 2024 were RMB 6,453.5 million, an increase of RMB 1,152.6 million or 21.7% from RMB 5,300.8 million in 2023[46]. - Operating profit rose to approximately RMB 2,402.5 million in 2024, an increase of about RMB 797.9 million or 49.7% from RMB 1,604.6 million in 2023[46]. - In 2024, the company's pre-tax profit was approximately RMB 2,394.5 million, an increase of about 48.5% compared to the fiscal year ending December 31, 2023[41]. - The company’s net profit attributable to shareholders was approximately RMB 2,074.3 million, reflecting an increase of about 48.3% year-on-year[41]. - Total revenue for 2024 was approximately RMB 8,823.0 million, representing an increase of about RMB 1,839.2 million or 26.3% from RMB 6,983.8 million in 2023[43]. Market Presence and Operations - The company is actively expanding its market presence with 400+ sellable airlines and 260 domestic airports integrated into its systems[1]. - The company holds the leading market share in the decision-making system across nearly 40 major airports in China, with over 95% coverage of the civil aviation transfer passenger service platform in 263 airports nationwide[19]. - In 2024, the system processed approximately 732.4 million passengers for domestic and international commercial airlines, representing an 18.1% year-over-year increase[25]. - The company’s settlement and clearing system handled approximately 1,263.9 million transactions in 2024, a 24.2% increase year-over-year, with total revenue from agency settlements exceeding 66.38 billion RMB, up 39.7% year-over-year[29]. - The international passenger flights have recovered to over 80% of the levels seen in 2019, establishing a solid foundation for the company's business development[23]. Innovation and Technology - The company aims to enhance its core competitiveness by focusing on digital economy, low-altitude economy, and strategic emerging industries, while also investing in new growth areas[20]. - The company has signed contracts with 19 airlines for its digital retail middle platform solution, supporting a customer-centric business model[27]. - The company’s self-developed universal self-service check-in system is in use at 241 major domestic and international airports, with online check-in services applied to 358 airports[25]. - The group has achieved a leading market share in the A-CDM system among nearly 40 major domestic airports[33]. - The group launched the "Intelligent Customer Service Platform" based on large models, fully opening it to airlines, airports, and agents[38]. - The group has received international leading evaluation for its "Aviation Travel Chain" project, focusing on blockchain and digital currency technologies[35]. Employee and Corporate Governance - The company has 6,722 employees as of December 31, 2024[5]. - The company emphasizes its core values of talent, safety, service, and innovation, aiming to create value through information[88]. - The board consists of nine directors, with external directors making up more than half, including at least three independent non-executive directors[90]. - The company has established a governance framework to ensure independent opinions are provided during board decision-making processes[99]. - The company has implemented strict anti-corruption and reporting policies, ensuring compliance with relevant laws and maintaining transparent reporting channels[89]. Risk Management and Compliance - The company has established a comprehensive risk management and internal control system, which is deemed effective and sufficient, with no significant deficiencies reported during the evaluation period[126]. - The company has implemented a dynamic risk management process, continuously updating its risk database and conducting comprehensive risk assessments across five major risk areas: strategic, market, financial, legal, and operational[128]. - The internal control system is subject to annual effectiveness checks and continuous optimization to address any identified deficiencies and significant risks[129]. - The company aims to enhance its internal control capabilities by increasing budget allocations and resources to adapt to the expanding business scope[126]. Shareholder Relations and Dividends - The company proposed a final dividend of RMB 0.239 per share (tax included) for the year[18]. - The company plans to distribute a final dividend of RMB 699.4 million for the fiscal year 2024, which is approximately 35%-45% of the net profit attributable to the parent company[56]. - The company has maintained compliance with public float requirements as stipulated by the listing rules[153]. - The company disclosed compliance information, including annual reports and ESG reports, in accordance with regulatory requirements, accessible via the Hong Kong Stock Exchange and the company's compliance website[140]. Environmental, Social, and Governance (ESG) - The company has been recognized for its ESG efforts, being selected for the Central Enterprise ESG Pioneer 100 Index for four consecutive years, achieving a four-and-a-half-star rating[19]. - The company has a robust environmental policy and performance, detailed in the business review section[149]. - The Strategic Committee held 1 meeting in 2024, discussing sustainable development and reviewing the 2023 ESG report[122]. Related Party Transactions - The company has entered into a data center lease agreement with a related party, with a lease term from September 1, 2022, to August 31, 2025[182]. - The company has a service agreement with a related party for cloud services and computer system services, which constitutes a continuous related party transaction[190]. - The company’s independent non-executive directors have confirmed that the ongoing related party transactions are conducted on fair and reasonable terms[181]. - The company has implemented internal controls for related party transactions, including identification, management, monitoring, approval, and disclosure[180].

Group 1 - The core point of the article is that China Civil Aviation Information Network Co., Ltd. has applied for a patent for a string processing method and system used in fare search systems, which aims to improve the performance of string data processing by eliminating discrepancies between different data sources [1] Group 2 - China Civil Aviation Information Network Co., Ltd. was established in 2000 and is located in Beijing, primarily engaged in internet and related services, with a registered capital of approximately 292.62 million RMB [2] - The company has made investments in 39 enterprises and participated in 2,259 bidding projects, holding 137 trademark records and 1,787 patent records, along with 166 administrative licenses [2]

Group 1 - The core point of the article is that China Civil Aviation Information Network Co., Ltd. has applied for a patent for a ticket price search configuration method, system, electronic device, and storage medium, which aims to enhance the efficiency and user experience of ticket price searches [1][3] - The patent application was filed on December 2024, with the publication number CN119848324A [1] - The method involves distinguishing between trial calculation requests and user requests, utilizing both database and local cache data to improve real-time access and reduce resource consumption during the ticket price search process [1] Group 2 - China Civil Aviation Information Network Co., Ltd. was established in 2000 and is based in Beijing, primarily engaged in internet and related services [2] - The company has a registered capital of 2,926.209589 million RMB and has invested in 39 enterprises [2] - The company has participated in 2,259 bidding projects and holds 1,787 patent information records, along with 137 trademark information records and 166 administrative licenses [2]

Core Viewpoint - China Civil Aviation Information Network Co., Ltd. has applied for a patent related to a product transaction processing method aimed at simplifying the purchase process of ancillary services for passengers in the aviation service sector [1]. Company Overview - China Civil Aviation Information Network Co., Ltd. was established in 2000 and is located in Beijing, primarily engaged in internet and related services [2]. - The company has a registered capital of 292,620.9589 million RMB, which is also its paid-in capital [2]. - The company has made investments in 39 enterprises and participated in 2,207 bidding projects, holding 137 trademark records and 1,610 patent records, along with 166 administrative licenses [2].

Investment Rating - The report maintains a rating of "Buy" for the company [3] Core Views - The company is expected to continue its performance recovery with significant revenue and profit growth, achieving an operating income of 8.823 billion yuan in 2024, a year-on-year increase of 26.3%, and a net profit attributable to shareholders of 2.074 billion yuan, up 48.3% year-on-year [1][7] Financial Data and Valuation - For the fiscal year 2024, the company is projected to have total revenue of 88.23 billion yuan, with a year-on-year growth of 26% [2] - The operating profit is expected to reach 20.45 billion yuan, reflecting a 67% increase year-on-year [2] - The net profit attributable to shareholders is forecasted at 20.74 billion yuan, representing a 48% year-on-year growth [2] - Earnings per share (EPS) is projected to be 0.71 yuan for 2024, with a price-to-earnings (PE) ratio of 14.8 [2][10] - The company’s return on equity (ROE) is expected to improve to 9.3% in 2024 [3][10] Business Segments Performance - The revenue from the aviation information technology services segment is expected to be 4.319 billion yuan in 2024, a 12.2% increase year-on-year [7] - The settlement and clearing services segment is projected to generate 591 million yuan, up 32.2% year-on-year [7] - System integration services are anticipated to see a significant increase in revenue to 1.889 billion yuan, a 89.9% rise year-on-year [7] - The technical support and product revenue is expected to reach 9.37 billion yuan, reflecting a 51.8% increase year-on-year [7] Market Recovery and Future Outlook - The company’s core business, AIT system processing volume, is expected to reach 730 million passengers in 2024, a year-on-year increase of 18.1% [7] - Domestic flight processing volume is projected to be 640 million passengers, up 12.2% year-on-year, while international flight processing volume is expected to recover significantly [7] - The company is expected to benefit from the long-term growth of the Chinese civil aviation market, with net profits projected to reach 2.220 billion yuan in 2025 and 2.503 billion yuan in 2026 [7][10]

Investment Rating - The investment rating for the company is "Buy" with a target price of 15.40 HKD [6][7]. Core Views - The company, China Civil Aviation Information Network (CCAIN), is expected to see a significant increase in net profit for 2024, projected at 2.074 billion RMB, a year-on-year increase of 48.3%. Revenue is anticipated to reach 8.823 billion RMB, up 26.3% year-on-year. The net profit for the second half of 2024 is expected to be 710 million RMB, a substantial increase of 256.1% year-on-year, primarily due to the recognition of revenue from system integration and technical services [1][2][3]. - The company's main business, Aviation Information Technology (AIT), is showing steady growth, with a 13.1% increase in airline business processing volume in the second half of 2024. Despite a 7.4% decrease in unit price, AIT revenue grew by 4.7% to 2.05 billion RMB. The system integration business saw a remarkable 79.4% increase in revenue, reaching 1.21 billion RMB in the second half of 2024 [2][3]. - The company has improved its profit forecast slightly, raising the net profit estimates for 2025 and 2026 by 1% and 2% respectively, and expects net profit for 2027 to be 2.785 billion RMB. The target price has been adjusted to 15.40 HKD based on a 19x PE ratio for 2025 [4][6]. Summary by Sections Financial Performance - For 2024, the company is projected to achieve a net profit of 2.074 billion RMB, a 48.3% increase from the previous year, with total revenue expected to be 8.823 billion RMB, reflecting a 26.3% growth. The second half of 2024 is expected to show a net profit of 710 million RMB, a significant increase of 256.1% year-on-year [1][3]. - The total operating costs for 2024 are projected at 4.31 billion RMB, a 30.0% increase year-on-year, while gross profit is expected to rise by 23.1% to 4.51 billion RMB [3][5]. Revenue Breakdown - AIT revenue for the full year is expected to reach 4.32 billion RMB, a 12.2% increase, while the system integration business is projected to grow by 89.9% to 1.89 billion RMB. Technical support services are anticipated to see a 109.9% increase in revenue in the second half of 2024 [2][4]. Dividend Policy - The company has increased its dividend payout ratio to 35%-45%, up from the previous 30%-40%, indicating a stronger focus on shareholder returns [3].

Core Viewpoint - CICC has raised the net profit estimates for China Civil Aviation Information Network (00696) for 2025 and 2026 by 10.7% and 8.9% to CNY 2.327 billion and CNY 2.581 billion respectively, primarily due to increased project-based service revenue [1] Financial Performance - The company reported a revenue of CNY 8.823 billion for 2024, representing a year-on-year growth of 26%, and a net profit attributable to shareholders of CNY 2.074 billion, up 48%, aligning with market expectations [1] - In the second half of 2024, revenue reached CNY 4.781 billion, a 30% year-on-year increase and an 18% quarter-on-quarter increase; net profit was CNY 707 million, showing a 256% year-on-year growth but a 48% quarter-on-quarter decline [1] - The board proposed a dividend of CNY 0.239 per share (before tax), which accounts for 34% of the 2024 net profit attributable to shareholders, and adjusted the dividend policy to distribute cash dividends annually, targeting 35%-45% of net profit [1] Business Segments Performance - The AIT business generated CNY 2.054 billion in revenue in the second half of 2024, a 5% year-on-year increase, with total bookings up 13% but average price per booking down 7% to CNY 5.4 [2] - Other business segments showed strong growth: system integration revenue increased by 79% due to more projects reaching completion, and technical support and product revenue surged by 110% driven by rising IT service demands [2] - Settlement and clearing services, along with data network services, grew by 20% and 32% respectively, outpacing booking growth [2] Cost Structure - Operating costs in the second half of 2024 rose by 25.5%, driven by a 15% increase in labor costs (21% for the full year), a 31% rise in depreciation and amortization due to R&D expenses being capitalized, and a significant 180% increase in sales costs for integration services [3] - The company recorded a credit impairment loss of CNY 180 million, a decrease of CNY 242 million year-on-year [3] Development Trends - Business volume is steadily recovering, with a focus on the progress of international routes. For January to February 2025, the company reported a year-on-year increase of 3% for domestic routes, 29% for domestic international routes, and a 21% decline for international routes, recovering to 119%, 94%, and 45% of 2019 levels respectively [4] - The company anticipates that the recovery of international routes may improve in 2025 as previous constraints related to flight routes and supply-demand relationships with overseas airlines ease [4]

Core Viewpoint - China Civil Aviation Information Network (00696) reported a total revenue of 8.823 billion RMB for the fiscal year 2024, reflecting a year-on-year growth of 26.3% and a net profit attributable to shareholders of 2.074 billion RMB, which is a 48.3% increase year-on-year [1] Group 1: Financial Performance - Total revenue for 2024 reached 8.823 billion RMB, with a year-on-year increase of 26.3% [1] - Net profit attributable to shareholders was 2.074 billion RMB, marking a year-on-year growth of 48.3% [1] - Basic earnings per share stood at 0.71 RMB, with a proposed final dividend of 0.239 RMB per share (tax included) [1] Group 2: Industry Context - The global economy is experiencing a slow recovery, with China's economic operation remaining stable and showing signs of improvement [1] - Domestic passenger traffic has surpassed pre-pandemic levels from 2019, achieving a historical high, while international flights have recovered to over 80% of 2019 levels [1] Group 3: Revenue Breakdown - Revenue from aviation information technology services accounted for 48.9% of total revenue in 2024, down from 55.1% in 2023, totaling 4.319 billion RMB, a year-on-year increase of 12.2% [2] - The increase in aviation information technology services revenue was driven by an 18.1% rise in total system processing volume, despite international and foreign airline processing volumes not yet recovering to 2019 levels [2] - System integration services revenue constituted 21.4% of total revenue in 2024, up from 14.2% in 2023, amounting to 1.8877 billion RMB, with a significant year-on-year increase of 89.9% [2] - The growth in system integration services revenue was attributed to the orderly progress of engineering construction and an increase in the scale and number of projects meeting completion acceptance conditions [2]

Financial Performance - Total revenue for the fiscal year ending December 31, 2024, was approximately RMB 8,823.0 million, an increase of about 26.3% compared to the previous year[6] - Net profit attributable to shareholders of the parent company was approximately RMB 2,074.3 million, representing an increase of about 48.3% year-over-year[6] - Earnings per share (EPS) for the year was RMB 0.71, up from RMB 0.48 in the previous year[9] - The company reported a total comprehensive income of RMB 2,280.8 million, compared to RMB 1,445.8 million in the previous year[9] - Operating profit for the year was RMB 2,402.5 million, compared to RMB 1,604.6 million in the previous year[7] - The company reported a net profit of RMB 2,074,273 thousand, compared to RMB 1,398,952 thousand in the previous year, resulting in earnings per share of RMB 0.71, up from RMB 0.48[33] - In 2024, the company's pre-tax profit was approximately RMB 2,394.5 million, an increase of about 48.5% compared to 2023[54] - The net profit attributable to shareholders was approximately RMB 2,074.3 million, reflecting an increase of about 48.3% year-on-year[54] - Total revenue for 2024 was approximately RMB 8,823.0 million, representing an increase of about RMB 1,839.2 million or 26.3% from 2023[56] Dividends and Shareholder Returns - The board proposed a final cash dividend of RMB 0.239 per share for the fiscal year 2024, which is included in the adjusted dividend policy of distributing 35%-45% of the net profit[6] - The proposed cash dividend for the fiscal year 2024 is RMB 699,364 thousand, equating to RMB 0.239 per share, pending shareholder approval[34] - The company plans to distribute a final dividend of RMB 699.4 million for the fiscal year 2024, which is approximately 35%–45% of the net profit attributable to the parent company[65] Operating Costs and Expenses - Total operating costs for the year were RMB 6,453.5 million, an increase from RMB 5,300.8 million in the previous year[7] - Total operating costs for the current period amounted to RMB 6,358,861 thousand, up from RMB 5,218,966 thousand in the previous period, reflecting a year-on-year increase of approximately 21.9%[36] - The company's total operating costs for 2024 were RMB 6,453.5 million, an increase of RMB 1,152.6 million or 21.7% from 2023[57] - Research and development expenses for the year were RMB 824.6 million, slightly down from RMB 863.0 million in the previous year[7] Assets and Liabilities - Cash and cash equivalents at the end of the fiscal year were RMB 10,548.9 million, up from RMB 7,367.6 million in the previous year[10] - The company’s total assets at the end of the fiscal year were RMB 20,498.2 million, an increase from RMB 18,126.2 million in the previous year[10] - Total assets increased to RMB 29,694,646 million, up from RMB 27,500,129 million, representing a growth of approximately 8% year-over-year[11] - Total liabilities increased to RMB 6,797,660 million, compared to RMB 6,481,535 million, indicating a growth of around 5%[12] - Owner's equity reached RMB 22,896,986 million, up from RMB 21,018,594 million, which is an increase of about 8.9%[13] - The asset-liability ratio of the group as of December 31, 2024, is 22.9%, down from 23.6% as of December 31, 2023[82] Investments and Capital Expenditures - The company has committed RMB 1 billion to the establishment of a private equity fund focused on 5G applications and related industries, with actual contributions of RMB 852,175 thousand as of December 31, 2024[28] - The company has invested RMB 852.2 million in the China Mobile Equity Fund as of December 31, 2024, focusing on the 5G industry applications[79] - The total capital expenditure for the group in fiscal year 2024 was RMB 545.6 million, a decrease from RMB 1,227.8 million in fiscal year 2023[85] - The company has committed approximately RMB 1,207.7 million for capital expenditures, primarily for daily operations and system upgrades[85] Operational Highlights - The system processing volume for domestic and international commercial airlines reached approximately 732.4 million passengers in 2024, representing an 18.1% increase compared to the previous year[39] - The group’s settlement and clearing system processed approximately 1,263.9 million transactions in 2024, a year-on-year growth of 24.2%[42] - The revenue from agency settlement for passenger, cargo, and mail transport exceeded RMB 66.38 billion, marking a 39.7% increase compared to the previous year[42] - The group signed contracts with 19 airlines for its digital retail platform, enhancing customer-centric business models[40] - The group has established direct connections with 134 foreign and regional airlines, covering over 400 cities and reaching 32 countries and regions by 2024[43] Future Outlook and Strategic Initiatives - The company is focusing on enhancing safety production stability and improving information security and data management levels in 2025[98] - The company plans to increase investment in technology innovation and accelerate the transformation of technological achievements in 2025[98] - The company aims to expand its market coverage of smart civil aviation products and promote high-quality international operations in 2025[98] - The company acknowledges the challenges posed by external uncertainties and intensified competition in the domestic civil aviation information market[97] - The company will continue to deepen reform initiatives and enhance its strategic planning for the 15th Five-Year Plan[98] - The company is committed to maintaining its leading position in the industry while exploring new growth opportunities in the digital economy and emerging industries[97]