Core Points - The first C919 aircraft with a special paint scheme named "Great Bay Area" took off from Guangzhou Baiyun International Airport to Shanghai Hongqiao International Airport, carrying 157 passengers [1][3] - The design of the "Great Bay Area" aircraft features vibrant colors and focuses on key visual elements representing the Guangdong-Hong Kong-Macao Greater Bay Area, including the Hong Kong-Zhuhai-Macao Bridge and cultural symbols [1][3] Company Developments - The "Great Bay Area" aircraft is the first painted C919 model in the fleet, utilizing special aerospace coatings that enhance durability and reduce maintenance frequency [3] - Compared to traditional paints, the new coating significantly lowers the amount of paint used, thereby reducing volatile organic compound emissions [3] Service Enhancements - Guangzhou Baiyun International Airport has established dedicated check-in counters and security channels for passengers related to the 15th National Games, improving service for athletes and their equipment [3] - China Southern Airlines has introduced specialized services for athletes, including priority baggage handling and personalized assistance for wheelchair users [3] - The airline has launched themed boarding passes for the 15th National Games and the Special Olympics, integrating travel, event memorabilia, and service [3] Operational Performance - China Southern Airlines' fleet of C919 aircraft has expanded, with the "Great Bay Area" being the seventh C919 in operation [4] - The C919 has been in operation for over a year, covering 14 routes, flying more than 9,700 hours, and transporting over 590,000 passengers [4] - Regular commercial operations have been established in major cities such as Shanghai, Beijing, and Wuhan, with operational bases in Guangzhou and Changsha [4]

致：香港交易及結算所有限公司 公司名稱: 中國南方航空股份有限公司 呈交日期: 2025年11月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01055 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 4,643,997,308 | RMB | | | 1 RMB | | 4,643,997,308 | | 增加 / 減少 (-) | | | 0 | | | | RMB | | 0 | | 本月底結存 | | | 4,643,997,308 | RMB | | | 1 RMB | | 4,643,997,308 | | 2. 股份分類 | 普通股 | 股份類別 | A | | 於香港聯交所上市 (註1) | | 否 | | | --- | --- | - ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年10月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中國南方航空股份有限公司 呈交日期: 2025年11月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01055 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 4,643,997,308 | RMB | | | 1 RMB | | 4,643,997,308 | | 增加 / 減少 (-) | | | 0 | | | | RMB | | 0 | | 本月底結存 | | | 4,643,997,308 | RMB | | | 1 RMB | | 4,643,997,308 | | 2. ...

Group 1 - The performance of four mainland airlines in Q3 showed divergence, with China Eastern Airlines experiencing the strongest net profit growth of 34% year-on-year, followed by China Southern Airlines with a 20% increase. Spring Airlines and Air China saw net profit declines of 6% and 11%, respectively [1] - Revenue per available seat kilometer exceeded expectations, with stable data reported for September. The decline in fuel costs is expected to benefit the overall cost structure, although the unit cost performance excluding fuel varied, with Air China lagging in cost optimization [1] - Adjustments were made to Air China's 2025 profit forecast, changing from a loss of 54 million yuan to a profit of 473 million yuan, while forecasts for 2026 and 2027 were lowered by 5.7% and 4.2%, respectively. China Southern Airlines' 2025 profit forecast was reduced by 54%, but forecasts for 2026 and 2027 were raised by 16% and 14%. China Eastern Airlines' forecasts for 2025 to 2027 were increased by 56%, 0.8%, and 0.7%, respectively. Spring Airlines' 2025 profit forecast was lowered by 2.7%, with 2026 and 2027 forecasts remaining unchanged [1] Group 2 - The firm reiterated "underperform" ratings for Air China, China Eastern Airlines, and China Southern Airlines due to ongoing pressure on domestic ticket prices, which pose downside risks to profits in 2025 and 2026. Conversely, a "buy" rating was maintained for Spring Airlines, attributed to its cost leadership position and expected stable growth in 2025 and 2026 [2]

Core Insights - The opening of Guangzhou Baiyun Airport's T3 terminal and the fifth runway marks a significant upgrade in the airport's capabilities, enhancing its status as a major aviation hub [1][8] - Shenzhen has been selected as the host city for the 2026 APEC meeting, presenting new development opportunities for Shenzhen Bao'an International Airport [2] - The three major airports in the Guangdong-Hong Kong-Macao Greater Bay Area (Guangzhou, Shenzhen, and Hong Kong) are engaged in both competition and collaboration to expand the regional aviation market [3][4] Airport Developments - Guangzhou Baiyun Airport achieved a record passenger volume of over 7.6 million in October 2025, reflecting an 11% year-on-year increase [8] - Hong Kong International Airport processed 44.7 million passengers in the first three quarters of the year, with a 14.8% increase compared to the same period in 2024 [4] - Shenzhen Airport reported a significant increase in passenger and cargo traffic during the recent holiday period, with 1.602 million passengers and 38,000 tons of cargo handled [4] Competitive Landscape - The three major airports are competing for air traffic while also working together to grow the overall aviation market in the Greater Bay Area [3][4] - Cathay Pacific and China Southern Airlines are the two main carriers competing for market share, with Cathay expanding its routes into China and Southern Airlines responding by increasing flights to Hong Kong [11][15] - Cathay Pacific's new direct flight from Hong Kong to Urumqi and increased flights to major cities in mainland China highlight its strategy to capture high-end travelers [12][14] Future Outlook - The Greater Bay Area is projected to see a total passenger throughput of over 200 million by 2024, indicating strong growth potential for the aviation sector [19] - The collaboration among the three airports aims to create a world-class airport cluster, enhancing the region's global aviation standing [20] - The competitive dynamics between Cathay Pacific and China Southern Airlines are expected to improve service quality and passenger experience, providing travelers with more options and better pricing [20]

Core Viewpoint - China Southern Airlines' stock price has shown a modest increase this year, with a notable rise in recent trading days, reflecting a positive trend in the airline's performance and market sentiment [1][2]. Financial Performance - For the period from January to September 2025, China Southern Airlines reported a revenue of 137.67 billion yuan, representing a year-on-year growth of 2.23% [2]. - The net profit attributable to shareholders for the same period was 2.31 billion yuan, marking a year-on-year increase of 17.40% [2]. Stock Market Activity - As of November 4, the stock price of China Southern Airlines was 6.81 yuan per share, with a market capitalization of 123.40 billion yuan [1]. - The stock has increased by 4.93% year-to-date, with a 1.64% rise over the last five trading days, 14.45% over the last 20 days, and 19.68% over the last 60 days [1]. Shareholder Information - As of September 30, 2025, the number of shareholders for China Southern Airlines was 133,300, a decrease of 4.76% from the previous period [2]. - The top ten circulating shareholders include Hong Kong Central Clearing Limited, which holds 586 million shares, an increase of 4.32 million shares from the previous period [3].

Investment Rating - The report maintains a "Recommended" rating for China Southern Airlines [6][8]. Core Views - The company's Q3 earnings showed a year-on-year growth, driven by improved cost management despite revenue pressures from declining prices [3][4]. - The overall capacity growth in Q3 partially offset the impact of price declines, with a 5.3% increase in available seat kilometers (ASK) [4]. - The unit fuel cost and financial expenses are on a downward trend, contributing to profit improvements [5]. - The report forecasts a rebound in ticket prices, which is expected to enhance profitability [6]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported revenue of 137.7 billion yuan, a year-on-year increase of 2.2%, and a net profit attributable to shareholders of 2.31 billion yuan, up 17.4% [3]. - In Q3 alone, revenue reached 51.4 billion yuan, reflecting a 3.0% year-on-year growth, with a net profit of 3.84 billion yuan, up 20.3% [3]. Capacity and Revenue - The company's capacity growth slowed in Q3, with domestic ASK increasing by 4.5% and international ASK by 9.4% [4]. - The overall passenger revenue decreased by 3.6% year-on-year, indicating pricing pressures, although September saw a price increase of 1.0% [4]. Cost Management - The unit cost decreased by 3.5% year-on-year, with unit fuel costs at 0.14 yuan, down 7.3% [5]. - Financial expenses also decreased, with interest expenses down by approximately 300 million yuan year-on-year [5]. Profitability Outlook - The report projects net profits for 2025-2027 to be 1.84 billion, 4.24 billion, and 7.67 billion yuan respectively, with corresponding price-to-earnings ratios of 68, 30, and 16 [6][7].

Core Viewpoint - The performance of four mainland Chinese airlines in Q3 showed significant divergence, with Eastern Airlines reporting the strongest net profit growth of 34% year-on-year, followed by Southern Airlines with a 20% increase. In contrast, Spring Airlines and Air China experienced declines in net profit of 6% and 11%, respectively [1] Group 1: Airline Performance - Eastern Airlines achieved the highest net profit growth at 34% year-on-year [1] - Southern Airlines followed with a net profit increase of 20% year-on-year [1] - Spring Airlines and Air China reported net profit declines of 6% and 11%, respectively [1] Group 2: Revenue and Cost Analysis - Revenue per available seat kilometer exceeded expectations, with stable data reported for September [1] - A decline in fuel costs is expected to benefit the overall cost structure [1] - Excluding fuel, unit cost performance varied, with Air China lagging in cost optimization [1] Group 3: Ratings and Future Outlook - The firm reiterated a "underperform" rating for Air China, Eastern Airlines, and Southern Airlines due to ongoing pressure on domestic ticket prices, posing downside risks to profits in 2025 and 2026 [1] - A "buy" rating was maintained for Spring Airlines, attributed to its cost leadership position and expected stable growth in 2025 and 2026 [1]

Core Viewpoint - The domestic civil aviation industry in China is expected to turn profitable in 2024, with the three major state-owned airlines (Air China, China Eastern Airlines, and China Southern Airlines) achieving profitability in the first three quarters of 2025 after years of losses [1][3]. Group 1: Financial Performance of Major Airlines - All three major state-owned airlines reported revenue growth and profitability in the first three quarters of 2025, benefiting from the summer travel peak and foreign exchange gains [2]. - Air China achieved a net profit of 1.87 billion yuan in the first three quarters, while China Eastern Airlines and China Southern Airlines reported net profits of 2.10 billion yuan and 2.31 billion yuan, respectively [3]. - The three major airlines had accumulated losses exceeding 200 billion yuan over the past five years, but signs of recovery are evident, with expectations for profitability in 2025 [3]. Group 2: International Market Growth - The international market has become a key growth area for major airlines, with significant increases in passenger turnover on international routes compared to domestic routes [4]. - For the first nine months of the year, Air China, China Eastern Airlines, and China Southern Airlines reported international passenger turnover growth rates of 14.9%, 24.16%, and 19.54%, respectively, compared to domestic growth rates of 1.2%, 6.08%, and 4.10% [4]. - China Eastern Airlines has been actively expanding its international routes, including the launch of a new route from Shanghai to Buenos Aires, which will set a record for the longest single-route flight [4]. Group 3: Challenges Faced by Private Airlines - Private airlines such as Spring Airlines and Juneyao Airlines reported declines in net profit for the first three quarters, with Spring Airlines losing its title as the "most profitable airline" to Hainan Airlines [6]. - Despite increased flight and passenger volumes, many airlines are struggling to achieve profitability due to lower ticket prices driven by intense competition and market dynamics [7]. - The average ticket price has decreased significantly, with a drop of over 20% in February and more than 8% during the peak summer months, impacting overall profitability [7][8].

Core Viewpoint - China Southern Airlines (CSA) is enhancing its pilot training and selection processes to ensure high safety standards and improve the quality of its flight crew, aligning with the new era of aviation workforce development [1][10]. Group 1: Pilot Training System - CSA showcased its advanced training system based on "Pilot Lifecycle Management (PLM)" during the "Pilot Growth Path" media open day event [1]. - The training includes immersive experiences with full-motion flight simulators for aircraft models such as A350, A320, and B737, allowing pilots to practice in a risk-free environment [4]. - The training philosophy emphasizes "Evidence-Based Training (EBT)" to enhance pilots' decision-making and operational skills under various simulated conditions [4]. Group 2: Safety Management and Emergency Response - Media representatives observed a helicopter sea rescue drill, demonstrating CSA's robust safety management capabilities and the professional skills of its general aviation pilots [6][7]. - CSA has actively participated in emergency rescue operations, completing over 2,200 helicopter missions and flying more than 4,400 hours in recent years, rescuing over 3,200 individuals [9]. Group 3: Recruitment and Selection Process - CSA is optimizing its recruitment mechanisms, shifting from a focus on academic performance and physical fitness to a more holistic evaluation of candidates' mental and emotional attributes [11]. - The introduction of the PAT (Pilot Aptitude Test) in 2024 will scientifically assess candidates' core abilities, including attention, working memory, spatial awareness, and personality traits [11]. - CSA is also increasing its collaboration with top universities to enhance the quality of its talent pool, ensuring a strong foundation for high-quality aviation development [12].