Core Viewpoint - The domestic airline stocks have risen in early trading, driven by positive earnings reports for Q3 2025 from major airlines, indicating a potential "super cycle" in the industry due to increased demand and rising ticket prices [1] Group 1: Airline Stock Performance - Eastern Airlines (00670) increased by 3.26%, trading at 4.44 HKD - Air China (601111) (00753) rose by 2.91%, trading at 6.36 HKD - Southern Airlines (600029) (01055) gained 2.63%, trading at 5.08 HKD - Capital Airport (00694) saw a rise of 1.06%, trading at 2.85 HKD [1] Group 2: Financial Performance - Major domestic airlines reported revenue growth and profitability for Q3 2025, supported by summer travel and foreign exchange gains - The combined net profit of the three major airlines after excluding non-recurring items reached 10.27 billion, an increase from 9.19 billion in the same period last year [1] Group 3: Market Outlook - According to Guotai Junan Securities, October is expected to see a 5% year-on-year increase in passenger traffic due to strong private travel and active business travel post-holiday - Domestic jet fuel prices remained stable year-on-year, while ticket prices increased by 3-4%, further expanding from September - The Chinese aviation industry is anticipated to achieve profitability in October, outperforming typical seasonal performance - The industry is expected to enter a "super cycle," driven by market-driven ticket pricing, steady demand growth, and optimized passenger structure, which will elevate the profit center for airlines by 2026 [1]

Group 1 - China International Airlines Co., Ltd. experienced a stock price increase of 5.18%, reaching 8.73 CNY per share, with a trading volume of 412 million CNY and a turnover rate of 0.41%, resulting in a total market capitalization of 152.325 billion CNY [1] - The company, established on March 27, 2006, and listed on August 18, 2006, primarily engages in air passenger transport and air cargo and postal services, with revenue composition being 90.64% from air passenger transport, 4.93% from other services, and 4.43% from air cargo and postal services [1] Group 2 - Among the top ten circulating shareholders of China International Airlines, Huatai-PB Fund's ETF reduced its holdings by 3.0703 million shares in the third quarter, now holding 63.7305 million shares, which accounts for 0.39% of circulating shares, resulting in an estimated floating profit of approximately 27.4041 million CNY [2] - The Huatai-PB CSI 300 ETF, established on May 4, 2012, has a current scale of 425.581 billion CNY, with a year-to-date return of 21.77% and a one-year return of 15.72%, ranking 2630 out of 4216 and 2459 out of 3917 respectively [2] - The fund manager, Liu Jun, has a tenure of 16 years and 164 days, managing assets totaling 542.504 billion CNY, with the best fund return during his tenure being 149.44% and the worst being -45.64% [2]

Group 1 - Hong Kong airline stocks experienced an upward trend in early trading, with Eastern Airlines (00670.HK) rising by 3.26% to HKD 4.44 [1] - China National Aviation (00753.HK) increased by 2.91%, reaching HKD 6.36 [1] - Southern Airlines (01055.HK) saw a rise of 2.63%, trading at HKD 5.08 [1] - Capital Airport (00694.HK) gained 1.06%, priced at HKD 2.85 [1]

Core Points - China National Airlines' stock price increased by 2.05% to 8.47 CNY per share as of 09:51 on November 10, with a total market capitalization of 147.79 billion CNY [1] - The company reported a year-to-date stock price increase of 7.08%, with a 7.76% increase over the last five trading days and a 16.35% increase over the last 60 days [1] - For the first nine months of 2025, the company achieved a revenue of 129.83 billion CNY, a year-on-year growth of 1.31%, and a net profit attributable to shareholders of 1.87 billion CNY, reflecting a 37.31% increase [2] Financial Performance - The company has cumulatively distributed dividends of 13.32 billion CNY since its A-share listing, with no dividends distributed in the last three years [3] - As of September 30, 2025, the number of shareholders decreased by 0.12% to 129,100, with an average of 0 shares per shareholder [2][3] Shareholding Structure - The top ten circulating shareholders include China Securities Finance Corporation, holding 311 million shares, and Hong Kong Central Clearing Limited, holding 156 million shares, which decreased by 123 million shares compared to the previous period [3] - Industrial Bank Co., Ltd. Convertible Bond (003401) is a new entrant among the top ten shareholders, holding 65.22 million shares [3]

Core Viewpoint - The domestic airline stocks have shown an upward trend, driven by strong performance in the third quarter of 2025, with major airlines reporting revenue growth and profitability due to summer travel and foreign exchange gains [1] Group 1: Airline Stock Performance - Eastern Airlines (00670) increased by 3.26%, trading at 4.44 HKD; Air China (00753) rose by 2.91%, trading at 6.36 HKD; Southern Airlines (01055) gained 2.63%, trading at 5.08 HKD; Capital Airport (00694) saw a 1.06% increase, trading at 2.85 HKD [1] - The three major airlines reported a combined net profit of 10.27 billion HKD in the third quarter, up from 9.19 billion HKD in the same period last year [1] Group 2: Market Outlook - According to Guotai Junan Securities, the October holiday period is expected to see a 5% year-on-year increase in passenger traffic, with domestic jet fuel prices remaining stable while ticket prices are projected to rise by 3-4% compared to September [1] - The Chinese aviation industry is anticipated to achieve profitability in October, outperforming typical seasonal performance, with expectations of entering a "super cycle" driven by market-driven ticket pricing, steady demand growth, and optimized passenger structure [1]

Core Points - The event commemorates the 76th anniversary of the "Two Airlines Uprising," where employees of two airlines took a stand in Hong Kong and flew back to mainland China, contributing to the establishment of the new aviation industry in China [3][4] - The flight CA104, operated by the domestically produced C919 aircraft, retraced the historical route taken by the uprising, symbolizing a connection between past and present in promoting patriotism and the development of the aviation industry [2][3] Group 1 - On November 9, the CA104 flight from Hong Kong to Tianjin was a tribute to the "Two Airlines Uprising," highlighting the patriotic spirit of the event [2][3] - The flight was piloted by Captain Hao Xin, who shared the historical significance of the uprising with passengers during the journey [3] - The C919 aircraft's flight was celebrated with a water salute upon landing at Tianjin Binhai International Airport, marking a significant moment in Chinese aviation history [5] Group 2 - A new exhibition hall dedicated to the "Two Airlines Uprising" was opened, showcasing the history and significance of the event through various exhibits [4] - The uprising involved over 2,000 employees and 12 aircraft, which successfully returned to Beijing and Tianjin under the leadership of key figures in the aviation industry [4] - The exhibition aims to educate the public about the historical context and contributions of the "Two Airlines Uprising" to the development of civil aviation in China [4]

Investment Rating - The report maintains a "Recommendation" rating for the transportation industry [3] Core Insights - The transportation industry is experiencing a recovery, with various segments showing potential for growth, particularly in shipping, infrastructure, aviation, and express delivery [7][19][22][20] Shipping - The shipping sector is seeing mixed price movements, with the SCFI for the US East route down 17.2% and the Southeast Asia route up 6.4% [11] - The report highlights the importance of monitoring the price increases in container shipping and the potential recovery in oil tanker rates due to improved US-China trade relations [16][12] Infrastructure - Key metrics indicate a decline in truck traffic and railway cargo, while port throughput has increased significantly, suggesting a shift in market dynamics [17][18] - The report emphasizes the potential for dividend stocks in the infrastructure sector, particularly in ports, which are currently undervalued [19] Aviation - The aviation sector shows a positive trend with a 7.2% year-on-year increase in passenger volume, driven by improved demand and a low base effect [22] - The report suggests that the industry is poised for profitability in 2026, with a focus on valuation recovery and potential investment opportunities in major airlines [22] Express Delivery - The express delivery sector is benefiting from a reduction in price competition, with a notable increase in business volume and revenue [20] - The report indicates that the "anti-involution" policies are helping to stabilize prices and improve profitability in the sector [20] Logistics - The logistics segment is experiencing stable performance, with cross-border air freight prices showing a week-on-week increase [23] - The report notes the importance of monitoring the daily traffic at key ports and the implications for logistics operations [23]

Group 1 - The core incident involves Air China's flight CA1339, which took off from Beijing to Guangzhou on November 7, returned to Beijing shortly after takeoff, and then took off again later that day [2][5] - The flight departed from Beijing Capital Airport at 12:29 PM, returned at 1:19 PM, and took off again at 3:49 PM, arriving in Guangzhou at 6:45 PM [5] - The flight experienced severe turbulence around 12:47 PM before the return [5] Group 2 - Air China confirmed the return of flight CA1339 was due to reasons attributed to the airline itself [2][5]

Core Points - China National Airlines announced the resignation of its Chief Legal Counsel, Zhang Hua, effective immediately due to retirement [2] - Zhang Hua has held various positions since joining the company, including Chief Legal Counsel of China National Airlines since August 2017 and Chairman of Dalian Airlines since March 2020 [2] - In addition to his roles at China National Airlines, Zhang Hua has served as Chief Compliance Officer for both China National Airlines and the Aviation Industry Corporation of China since December 2022 [2]

Core Points - On November 7, a flight from Beijing to Guangzhou (CA1339) returned to Beijing shortly after takeoff due to airline reasons [1] - The flight was scheduled to depart at 12:00 PM and arrive at 3:25 PM, but it actually took off at 12:30 PM and landed at 6:45 PM [1] - The flight reached an altitude of approximately 9,000 meters before descending and returning to Beijing at 1:20 PM, then took off again at 3:49 PM after a delay of about 2 hours and 30 minutes [1] - The flight was operated by a different aircraft, an Airbus A330-343X, as indicated by flight tracking apps [1]