Investment Rating - The industry investment rating is "In-Line" [5][10]. Core Insights - China's total absolute non-domestic Available Seat Kilometers (ASK) was 76% of 2019's level as of June 9, 2025, reflecting a 12% year-over-year increase but a slight decrease of 1% week-over-week [10]. - Excluding US routes, the recovery of China's absolute non-domestic ASK reached 86% of 2019's level [10]. - Capacity additions were noted on Hong Kong (+2%) and US (+1%) routes, while reductions occurred on Macau (-1%) and Korea (-1%) routes [10]. - Significant year-over-year increases in ASK were observed for Japan (+35%), Korea (+25%), Hong Kong (+17%), and US (+13%) routes, while Macau (-15%) and Thailand (-31%) saw decreases [10]. - Seat capacity for Japan, Thailand, and Korea routes reached 106%, 47%, and 94% of 2019 levels, respectively, while US routes were at 29% [10]. Summary by Relevant Sections International Air Capacity - Non-domestic ASK was 76% of 2019's level as of June 9, 2025, compared to 77% the previous week [2]. - Total seat capacity has recovered to approximately 80% of 2019's level [5]. Capacity Recovery - The report highlights that total absolute non-domestic ASK was -1% week-over-week and +12% year-over-year [10]. - Specific route recoveries include Japan at 106%, Korea at 94%, and US routes at 29% of 2019 levels [10]. Company Ratings - Air China Limited (601111.SS) rated Equal-weight, Air China Limited (0753.HK) rated Overweight [62]. - Cathay Pacific Airways (0293.HK) rated Equal-weight, China Eastern Airlines (600115.SS) rated Equal-weight [62]. - China Southern Airlines (600029.SS) rated Equal-weight, COSCO SHIPPING Energy Transportation (1138.HK) rated Overweight [62].

Core Viewpoint - China Southern Airlines is increasing its international and regional flight routes to meet the demand for summer travel and support the high-quality development of the Belt and Road Initiative [1][2] Group 1: New Routes - Starting June 16, China Southern Airlines will launch a direct flight from Beijing Daxing to Dushanbe, operating 2 flights per week on Tuesdays and Saturdays using Boeing B737-8 aircraft [1] - From June 25, a new direct flight from Guangzhou to Almaty will commence, with 3 round trips per week on Mondays, Wednesdays, and Fridays, also using Boeing B737-8 aircraft [1] - A new direct flight from Guangzhou to Tashkent will start on June 30, with 3 round trips per week using Boeing B787-800 aircraft [1] - From July 1, a direct flight from Harbin to Vladivostok will be launched, operating 2 round trips per week on Tuesdays and Saturdays using Airbus A320 aircraft [1] Group 2: Increased Flight Frequencies - China Southern Airlines will increase flight frequencies on popular routes in Australia and Southeast Asia, including the Urumqi-Tbilisi route, which will increase from 4 to 7 round trips per week starting June 1 [2] - The Urumqi-Yerevan route will increase from 2 to 3 round trips per week starting June 11 [2] - The Guangzhou-Brisbane route will expand from 5 to 7 round trips per week starting June 12 [2] - The Urumqi-Baku route will increase from 3 to 5 round trips per week starting July 1 [2] - From July 11, the Guangzhou-Phuket and Guangzhou-Sabah routes will increase from 1 to 2 round trips daily [2] - The Guangzhou-Nha Trang route will increase from 1 to 2 round trips daily starting July 18 [2] - The Guangzhou-Nairobi route will expand from 2 to 3 round trips per week starting July 24 [2] Group 3: Overall Capacity - After the new routes and increased frequencies, China Southern Airlines will operate a total of 150 international and regional routes, with a planned weekly flight volume of 2,000 flights, providing more options and convenience for travelers during the summer peak season [2]

Investment Rating - The report rates the transportation industry as "Outperform" [1] Core Insights - The shipping rates on the Asia-Brazil route have surged by 100% due to a shortage of available vessels and containers, with rates reaching $3,300 per container [2][12] - The global new ship order volume has dropped to a four-year low, with only 439 vessels ordered in the first four months of 2025, a significant decrease from 980 vessels in the same period of 2024 [2][13] - During the Dragon Boat Festival in 2025, civil aviation passenger volume reached 5.63 million, with a total of 101 new international air cargo routes opened in the first five months [2][14] - The express delivery industry saw a 15.4% year-on-year increase in package volume during the Dragon Boat Festival, with a total of 1.511 billion packages collected nationwide [2][21] Summary by Sections 1. Industry Hot Events - The Asia-Brazil shipping rates increased by 100% due to a shortage of vessels and containers, influenced by trade policies and seasonal demand [12] - The civil aviation passenger volume during the Dragon Boat Festival reached 5.63 million, with 101 new international air cargo routes opened [14] - The express delivery industry experienced a 15.4% year-on-year growth in package volume during the Dragon Boat Festival [21] 2. High-Frequency Data Tracking - In May 2025, domestic cargo flight operations decreased by 6.76%, while international flights increased by 26.98% [33] - The shipping price index for domestic trade decreased, while dry bulk freight rates increased [41] - The express delivery business volume in April 2025 rose by 19.10% year-on-year, with revenue increasing by 10.80% [52] 3. Investment Recommendations - Focus on the equipment and manufacturing export chain, recommending companies like COSCO Shipping, China Merchants Energy Shipping, and Huamao Logistics [4] - Attention to low-altitude economy investment opportunities, recommending CITIC Offshore Helicopter [4] - Investment opportunities in the cruise and ferry sectors, recommending Bohai Ferry and Haixia Co [4] - E-commerce and express delivery investment opportunities, recommending SF Express, Jitu Express, and Yunda [4] - Investment opportunities in the aviation sector, recommending China National Aviation, China Southern Airlines, and Spring Airlines [4]

6月10日，首届中国航空金融支付论坛开幕，如何加速航空支付体系现代化、建构数字人民币航空支付 新生态，成为重要议题。 比如，通过引入金融网关（IFG）和IATA Pay等先进解决方案，简化流程、提升效率、降低成本，加速 行业数字化转型。同时，助力航空公司利用现代航空零售（Modern Airline Retailing）模式重掌产品、 资金和数据主导权，迈向100%报价与订单体系（100% Offers & Orders）；并鼓励中国航司使用BSP结 算NDC销售，释放规模效应，实现更大商业价值。 此外，国际航协也在持续推动支付领域的标准化与合规建设，推动制定统一标准与操作流程，营造公 平、透明的市场环境。 "我们致力于推动航空金融支付领域的创新与合作，为航空公司提供更优的服务与产品，优化成本结 构，提升运营效率和盈利能力。"国际航协地区副总裁-北亚区兼国际航协北京办事处首席代表解兴权博 士表示。 主流判断认为，航空支付的革新势在必行。中国市场正呈现"全渠道融合"的积极趋势，即航空公司通过 整合直销平台、分销渠道与支付工具（如移动支付、银行卡、数字人民币等）之间的数据与服务界限， 逐步实现线上线下（30095 ...

Group 1 - The Hong Kong aviation stocks experienced a volatile upward trend, with China Eastern Airlines (00670.HK) rising over 4% [1] - China Southern Airlines (01055.HK) increased by more than 3.5% [1] - BOC Aviation (02588.HK) saw a nearly 3% rise [1] - Air China (00753.HK) gained 1.7% [1]

记者今日从航宇嘉泰获悉，东航和南航成为国产飞机座椅制造商航宇嘉泰的新股东，其中东航通过旗 下东航产投持股9%，南航通过旗下南航资本持股11%。 在此之前，航宇嘉泰为中航工业集团旗下公司全资持有，公司是国产飞机C919目前唯一的座椅供应 商。 ...

Core Viewpoint - The China Civil Aviation Association has announced the proposed award projects for the 2024 Civil Aviation Science and Technology Awards, inviting public objections within 30 days of the announcement [1]. Group 1: First Prize Projects - Six projects have been awarded the first prize, including key technologies and applications in complex high-altitude environments, multi-type full-motion simulators, and safety technologies for civil aircraft [3][4]. - Notable projects include the "Key Technologies and Applications for RNP AR Operations in Complex High-Altitude Environments" and "Key Technologies for Civil Aircraft Crash and Passenger Safety" [3]. Group 2: Second Prize Projects - Fourteen projects have received the second prize, focusing on intelligent weather forecasting, aviation information competency, and collaborative decision-making technologies [4][5]. - Significant projects include "Key Technologies for Intelligent Weather Forecasting in the Yangtze River Delta" and "Research on Multi-Dimensional Perception and Digital Imaging Technology for Aviation Information" [4]. Group 3: Third Prize Projects - Eleven projects have been awarded the third prize, emphasizing airport operation simulation, aircraft structure maintenance, and intelligent maintenance stations [6][7]. - Key projects include "Simulation and Safety Efficiency Assessment Technology for Airport Operations" and "Research on Key Technologies for Bird Strike Prevention at Airports" [6].

Investment Rating - The report maintains an "Outperform" rating for the transportation industry [1][3][5] Core Views - The logistics sector is benefiting from the introduction of unmanned delivery vehicles, which are expected to reduce costs and improve efficiency in the last mile of delivery [2][47] - The shipping industry is experiencing a divergence in performance, with oil tanker rates rising significantly for smaller vessels while VLCC rates are under pressure due to geopolitical factors [1][20][68] - The air travel sector is entering a low season, but domestic passenger flight volumes remain above 2019 levels, indicating a potential for recovery in pricing and demand [2][40][42] - The express delivery market is seeing strong demand growth, with major players like SF Express and ZTO Express planning to scale up their fleets of unmanned delivery vehicles [2][51] Summary by Sections Shipping Sector - Oil tanker rates have shown significant divergence, with small vessel rates increasing while VLCC rates are under pressure due to geopolitical tensions [1][20] - The report anticipates a rise in shipping rates due to limited new capacity and potential demand recovery, recommending companies like COSCO Shipping Energy and China Merchants Energy [1][68] Air Travel Sector - The overall and domestic passenger flight volumes have decreased slightly, but remain above 2019 levels, indicating resilience in the market [2][40] - The report suggests that domestic airfares may stabilize and recover in 2025, with recommendations for airlines such as Air China and China Southern Airlines [2][42] Express Delivery Sector - The introduction of unmanned delivery vehicles is expected to significantly reduce costs for leading companies in the express delivery market [2][47] - SF Express is projected to maintain a strong growth rate of 15-20% over the next two years, with a PE ratio of approximately 20 times for 2025 [2][51] Investment Recommendations - The report recommends a focus on companies with stable operations and potential for steady returns, including SF Express, ZTO Express, and China Merchants Energy [5][27]

Core Insights - The aviation industry is facing significant profitability challenges, particularly in the Asia-Pacific region, where airlines are projected to earn only $2.6 per passenger by 2025, far below the global average of $7.2 per passenger [1][10] - Despite the low profitability, global airline revenues are expected to reach a record high of $979 billion in 2025, with a net profit margin of only 3.7% [1][15] - The industry is heavily impacted by high operational costs, including fuel, labor, and maintenance, which limit profit margins to around 20-30% after covering essential expenses [4][5] Industry Overview - The Asia-Pacific region is the largest air passenger market globally but suffers from intense price competition, leading to lower profitability compared to other regions [1][10] - In China, half of the airlines are still operating at a loss, although the overall profitability improved in 2024, with a net profit of 4.47 billion yuan [3][11] - The average net profit margin for the aviation industry is projected to be 3.4% in 2024, slightly increasing to 3.7% in 2025 [4] Cost Structure - Fuel costs account for approximately 25% of total operating expenses for airlines, with significant impacts from fluctuations in oil prices [4][5] - Labor costs are expected to rise by 7.6% in 2025, reaching $253 billion, further squeezing profit margins [5] - Supply chain issues and an aging fleet are increasing maintenance costs, with a backlog of over 17,000 aircraft orders [5] Regional Performance - Middle Eastern airlines are the most profitable, with a projected net profit of $62 billion in 2025 and a profit per passenger of $27.2 [8] - North American airlines are expected to achieve a net profit of $127 billion in 2025, benefiting from high load factors [8] - In contrast, Latin American airlines are projected to see a decline in net profit, while African airlines maintain low profitability due to high operational costs [10] Future Outlook - The global aviation industry is expected to see a 1.3% increase in total revenue in 2025, driven by a 1.6% growth in passenger revenue [15] - A decrease in fuel prices by 13% is anticipated to significantly improve profitability for airlines in 2025 [17] - The recovery of international travel and increased passenger demand are expected to enhance the financial performance of airlines, particularly in China [17][19]

Core Insights - The C919 aircraft has successfully completed its first commercial flight at a regional airport, marking a significant milestone for domestic aviation in China [1][3] - China Southern Airlines (CSA) has established Nanyang Jiangying Airport as a regular training base for the C919, enhancing operational capabilities and pilot training [1][5] Group 1: C919 Aircraft Operations - The C919 aircraft arrived at Nanyang on June 4 and completed its first commercial flight on the Guangzhou-Nanyang route [1][3] - The training involved 16 pilots undergoing practical flight training after extensive simulator training, with each pilot performing multiple takeoffs and landings [3] - The latest C919 received by CSA is the fifth in its fleet, featuring a standard range configuration with a three-class layout of 164 seats [3] Group 2: Training and Infrastructure - Nanyang Jiangying Airport boasts excellent conditions for flight training, with over 300 days of suitable weather annually and a history of completing over 540,000 flight training sessions [5] - CSA plans to receive an additional eight C919 aircraft this year and aims to open seven new routes, expanding its operational network [5] - The airport will continuously improve its runway and support systems to meet future training and operational demands for the C919 aircraft [5]