Market Performance - The aviation and airport sector increased by 1.32% on November 5, with Huaxia Airlines leading the gains [1] - The Shanghai Composite Index closed at 3969.25, up 0.23%, while the Shenzhen Component Index closed at 13223.56, up 0.37% [1] Stock Performance - Huaxia Airlines (002928) closed at 11.07, up 4.14% with a trading volume of 228,800 shares and a turnover of 250 million yuan [1] - HNA Holding (600221) closed at 1.87, up 3.31% with a trading volume of 13,966,000 shares and a turnover of 2.608 billion yuan [1] - Spring Airlines (601021) closed at 55.48, up 2.42% with a trading volume of 8,650 shares and a turnover of 476 million yuan [1] - China National Aviation (601111) closed at 8.26, up 1.98% with a trading volume of 549,400 shares and a turnover of 451 million yuan [1] - China Southern Airlines (600029) closed at 6.94, up 1.17% with a trading volume of 381,400 shares and a turnover of 263 million yuan [1] - Xiamen Airport (600897) decreased by 2.48% to 17.28 with a trading volume of 262,600 shares [2] Capital Flow - The aviation and airport sector experienced a net outflow of 118 million yuan from institutional investors, while retail investors saw a net inflow of 131 million yuan [2][3] - Major stocks like HNA Holding and Huaxia Airlines had mixed capital flows, with HNA Holding seeing a net inflow of 108 million yuan from institutional investors [3] - Retail investors contributed positively to the capital flow in several stocks, including China National Aviation and Shenzhen Airport [3]

Core Viewpoint - Global stock markets experienced a decline, while A-shares in the retail and duty-free sectors saw gains, driven by new government policies aimed at boosting consumption and an extended holiday period for the 2026 Spring Festival [1] Group 1: Market Performance - A-shares in the retail and duty-free sectors showed positive performance, with Hainan Airport rising by 6% and China Duty Free Group increasing by 3.71% [1] - The tourism ETF rose by 1%, while the largest food and beverage ETF increased by 0.18% [1] Group 2: Policy Changes - The Ministry of Finance and four other departments issued a notice to enhance duty-free shop policies, increasing the number of duty-free product categories to 47 and expanding domestic product offerings to encourage overseas consumption to return [1] Group 3: Holiday Impact - The official announcement of a nine-day Spring Festival holiday from February 15 to February 23, 2026, led to a doubling in search volume for train and international flight tickets on travel apps within half an hour [1] - The number of pre-booked tickets for the 2026 Spring Festival is projected to increase by 63% year-on-year [1] Group 4: Notable Products - The tourism ETF (562510) rose by 1.59%, with key stocks including China Duty Free, Junting Hotel, Hainan Airport, and Shanghai Airport [1] - The largest food and beverage ETF (515170) increased by 0.18%, with a total scale of 6.164 billion yuan and a year-to-date increase of 5.1 billion shares, primarily consisting of leading liquor stocks like Kweichow Moutai and Wuliangye [1]

Core Viewpoint - The aviation and airport sector experienced a notable increase of 2.36% on November 3, with China Eastern Airlines leading the gains, reflecting positive market sentiment in the industry [1]. Group 1: Market Performance - The Shanghai Composite Index closed at 3976.52, up 0.55%, while the Shenzhen Component Index closed at 13404.06, up 0.19% [1]. - Key stocks in the aviation sector showed significant gains, with China Eastern Airlines rising by 4.37% to a closing price of 5.01, and Southern Airlines increasing by 4.20% to 6.95 [1]. Group 2: Trading Volume and Capital Flow - The aviation sector saw a total trading volume of 2.11 billion yuan, with China Eastern Airlines contributing 11.12 billion yuan in transaction value [1]. - The sector experienced a net outflow of 70.22 million yuan from institutional investors, while retail investors saw a net inflow of 81.81 million yuan [2]. Group 3: Individual Stock Analysis - China Eastern Airlines led the sector with a closing price of 5.01 and a trading volume of 2.25 million shares [1]. - Hainan Airlines Holdings and China National Aviation Corporation also performed well, with increases of 3.39% and 3.31%, respectively [1]. - Conversely, Xiamen Airport and Spring Airlines saw declines of 1.89% and 0.37%, respectively [2]. Group 4: Detailed Capital Flow - Southern Airlines had a significant net outflow of 67.54 million yuan from speculative funds, while retail investors contributed a net inflow of 51.26 million yuan [3]. - Hainan Airlines Holdings and China National Aviation Corporation also faced net outflows from institutional and speculative funds, but retail investors showed positive net inflows [3].

Investment Rating - The industry rating for tourism retail is "Recommended" [2][4] Core Insights - The new policies aim to enhance the flexibility of duty-free operations by expanding product categories, relaxing approval processes, and improving service delivery, thereby stimulating duty-free shopping consumption [2] - The recent announcement on October 17 regarding Hainan's duty-free shopping policy includes an expansion of the product range, allowing domestic goods sales, adjusting the shopping age, and extending the applicable population, which is expected to boost duty-free consumption [3] - The continuous release of favorable duty-free shopping policies is anticipated to invigorate consumption in both offshore and inbound duty-free sectors, with significant growth potential for city duty-free stores [4] Summary by Sections Policy Overview - The new policies effective from November 1, 2025, include four core upgrades: empowering domestic products, expanding product categories, decentralizing approval processes, and optimizing services [1] - Specific product categories added include mobile phones, drones, sports goods, health foods, over-the-counter drugs, and pet foods [2] Hainan Duty-Free Policy Adjustments - The number of duty-free product categories has increased from 45 to 47, with new inclusions such as pet supplies and portable musical instruments [3] - Domestic products like clothing, ceramics, and tea can now be sold in duty-free stores, treated as exports for tax purposes [3] Investment Recommendations - The report identifies key beneficiaries of the new policies, including China Duty Free Group, Wangfujing, Hainan Airport, and others, suggesting potential performance improvements for these companies [4]

Investment Rating - The report maintains a "Positive" investment rating for the transportation industry [15] Core Insights - The transportation industry shows signs of recovery with various segments experiencing different levels of performance, driven by factors such as fuel cost reduction, normalization of travel demand, and strategic adjustments by companies [2][41] Summary by Sections Aviation - In Q3 2025, listed airlines saw significant improvement in fuel costs, leading to a notable divergence in profitability among carriers. The international growth rate outpaced domestic, with a 19% increase in available seat kilometers (ASK) and a 22% increase in revenue passenger kilometers (RPK) compared to the same period in 2019 [6][23] - The average fuel price decreased by 11% year-on-year, contributing to improved profitability for airlines like China Eastern and Southern, while others faced challenges due to maintenance issues [31][37] Airports - Listed airport companies benefited from the normalization of travel, with gradual increases in passenger flow and stable costs leading to improved profitability. For instance, Shanghai Airport reported a 52.5% year-on-year increase in net profit for Q3 2025 [7][45][47] Express Delivery - The express delivery sector saw improvements in franchise profitability, while direct operations faced pressure due to increased strategic investments aimed at solidifying core business foundations. The overall market trend indicated a "weak volume, stable price" scenario [8][49] Cross-Border Logistics - Cross-border logistics continued to face external pressures, with significant declines in shipping prices due to geopolitical factors. However, cargo airlines maintained relatively stable profits due to fleet expansions [9][10] Bulk Supply Chain - Despite weak domestic demand, the implementation of "anti-involution" policies since July has led to improved operational efficiency and profitability for leading supply chain companies [10] Maritime Transport - The maritime sector showed signs of recovery, with oil and bulk shipping profitability improving. Container shipping, while still under pressure, showed better-than-expected performance due to seasonal demand and easing trade tensions [11][12] Ports - Port operations benefited from increased imports of bulk commodities, leading to year-on-year growth in performance, particularly in dry bulk and container segments [12][45] Highways - The highway sector experienced a recovery in traffic volume in Q3 2025, resulting in positive year-on-year profit growth for major listed companies [13] Railways - Railway passenger and freight demand showed slight growth, with companies diversifying into non-coal freight and logistics services to enhance profitability [14]

Core Insights - The domestic aviation industry is experiencing a steady recovery, leading to widespread revenue growth among major listed airports in China [1] Group 1: Financial Performance - Shanghai Airport leads the industry with a total revenue of 9.714 billion yuan, a year-on-year increase of 5.69%, and a net profit of 1.634 billion yuan, up 35.98% [1] - Baiyun Airport reported a revenue of 5.697 billion yuan, reflecting a 7.48% year-on-year growth, with a net profit of 1.096 billion yuan, which surged by 64.06% [1] - Shenzhen Airport achieved the highest revenue growth rate among the six major airports at 10.80%, with total revenue of 3.839 billion yuan and a net profit of 468 million yuan, marking a 43.21% increase [1] Group 2: Strategic Developments - The completion of the third runway and the commencement of construction for Terminal 2 at Shenzhen Airport will lay the foundation for long-term capacity release [1]

移民管理警察在浦东机场航站楼的服务站为外籍进博来宾提供通关咨询服务（杨夏杰/摄 为落实进博会"越办越好"的总要求，今年，上海机场边检站团委紧扣"进博文明志愿服务第一站"定位，以"服务进博、赋能城市"为使命，主动牵头联动浦东机场海关、机场航站区管理部、机场 据悉，上海机场边检站联合浦东国际机场航站区管理部在浦东国际机场T1、T2 航站楼国际联检区域内，共同设置两个进博文明志愿服务站，与机场进博会专用服务中心"连点为线"，形成一张覆 在为进博来宾提供高效通关的基础上，志愿者们还会推出特色服务，"通关+问询"由上海机场边检"百人外语志愿服务队"民警轮流值守，提供英语、日语、韩语、德语等13种语言的通关咨询，实 转自：中国民航网 《中国民航报》、中国民航网 记者钱擘通讯员杨夏杰、李宇航 报道：11月2日，上海机场边检站等8家单位在浦东国际机场多个点位共同启动进博文明志愿服务站点，为来沪参展、观展进博会 ...

Core Points - The Shanghai Airport Border Inspection Station and seven other organizations launched a "Civilization Volunteer Service Station" at Pudong International Airport to provide comprehensive services for domestic and international travelers attending the China International Import Expo (CIIE) [1][2] Group 1: Service Integration - The initiative aims to transition from "dispersed service support" to "one-stop integrated service" by forming a "Youth Volunteer Service Alliance" that consolidates various port-related service capabilities [2] - Two volunteer service stations have been set up in the international inspection areas of Terminal 1 and Terminal 2, creating a service network that covers the entire inbound customs process [2] Group 2: Specialized Services - Volunteers will offer specialized services including "Customs + Inquiry" with a multilingual team providing real-time answers in 13 languages regarding entry policies and customs procedures [3] - "Customs + Travel" services will include guidance within the airport and public transport options to the National Exhibition and Convention Center [3] - A "Customs + Emergency Aid" mechanism has been established to ensure immediate medical assistance for travelers in need, enhancing the existing emergency response system [3] - The "Customs + Lost and Found" service expands the search area for lost items, ensuring comprehensive support for travelers [3]

Core Viewpoint - Shanghai Airport is set to implement its flight schedule for the winter-spring season from October 26, 2025, to March 28, 2026, with a significant number of planned flights and an increase in international services [1] Flight Operations Summary - The average daily planned flights at Shanghai Airport will be 2,419, comprising 1,643 flights at Pudong Airport and 776 flights at Hongqiao Airport [1] - The average daily planned international flights, including those to Hong Kong, Macau, and Taiwan, will be 766, with 720 at Pudong Airport and 46 at Hongqiao Airport, reflecting a year-on-year increase of 5% [1] - The average daily planned domestic flights (excluding Hong Kong, Macau, and Taiwan) will total 1,653, with 923 at Pudong Airport and 730 at Hongqiao Airport [1]

Core Insights - The domestic aviation industry is experiencing a steady recovery, with major listed airports reporting significant revenue growth in the first three quarters of the year [1][4] - Leading airports like Shanghai and Baiyun are benefiting from the recovery of international routes and strong non-aeronautical business, resulting in substantial profit increases [2][3] Financial Performance of Major Airports - Shanghai Airport reported a revenue of 9.714 billion yuan, a year-on-year increase of 5.69%, and a net profit of 1.634 billion yuan, up 35.98% [2] - Baiyun Airport achieved a revenue of 5.697 billion yuan, growing 7.48%, with a net profit of 1.096 billion yuan, which surged 64.06% [2] - Shenzhen Airport led the growth with a revenue increase of 10.80%, totaling 3.839 billion yuan, and a net profit of 468 million yuan, up 43.21% [3] Regional Airport Performance - Shenzhen Airport's international passenger throughput saw a significant increase of 13% in the third quarter, outperforming domestic routes [3] - Xiamen Airport maintained stable growth with a revenue of 1.523 billion yuan, a 7.21% increase, and a net profit of 384 million yuan, up 3.53% [3] Challenges Faced by Some Airports - Capital Airport reported a revenue of 4.205 billion yuan, a modest increase of 2.33%, but incurred a net loss of 239 million yuan [4] - Hainan Airport experienced a decline in net profit from 212 million yuan to 64 million yuan, despite a revenue increase to 3.280 billion yuan, reflecting a 69.77% drop in profitability [4] Overall Industry Performance - The total revenue of the six major listed airports reached 28.258 billion yuan, a year-on-year growth of 5.49%, while the combined net profit was 3.407 billion yuan, up 44.6% [4]