Group 1 - China Southern Airlines has officially put its ninth C919 domestic aircraft into operation, with its inaugural flight on the Guangzhou-Xi'an route [1][3] - Since the start of the Spring Festival travel season on February 2, China Southern Airlines has increased the deployment of domestic aircraft, operating nearly 1,400 flights with C919 and C909 aircraft, representing a year-on-year growth of 49.1% [1][3] - The airline has carried over 123,000 passengers, marking a year-on-year increase of 60.3% [1][3] Group 2 - The C919 aircraft are primarily deployed on over 80 routes, including major cities such as Nanjing, Hangzhou, and Beijing, to enhance travel options during the busy Spring Festival period [3] - During the Spring Festival, the C919 model has executed 275 flights, transporting over 38,000 passengers with a seat occupancy rate of 86.3% [3] - The newly received C919 aircraft will be managed by China Southern Airlines' Hunan branch and will operate two round trips daily on the Changsha-Beijing Daxing route during the Spring Festival [3]

据央视新闻，从中国南方航空了解到，2月11日，南航最新接收的第九架国产大飞机C919正式投入运 营，首航航班执飞广州-西安航线。 ...

Core Viewpoint - The company, China Southern Airlines, has clarified the nature of its deferred tax assets, which are recognized based on temporary differences according to accounting standards and tax regulations, and will begin to partially reverse previously recognized deferred tax assets starting from the 2025 semi-annual report [1] Group 1 - The deferred tax assets include not only tax losses but also other deductible temporary differences [1] - The company conducts a prudent assessment of deferred tax assets on the balance sheet date [1] - The full-year situation regarding deferred tax assets will be disclosed in the upcoming 2025 annual report [1]

Group 1 - Alibaba's Qianwen and Fliggy have partnered with over 40 global travel brands to provide exclusive subsidies and value-added benefits for AI users [1] - Initial partners include major airlines such as China Eastern Airlines, China Southern Airlines, and Emirates, as well as hotel brands like Wanda Hotels and Shanghai Disneyland [1] - The AI collaboration aims to enhance the travel experience by enabling users to easily identify their needs and match them with travel services through natural language interactions [1][2] Group 2 - The integration of AI is expected to transform consumer behavior in the travel industry, with 2026 being highlighted as a pivotal year for AI-driven consumption [3] - Airlines are encouraged to leverage platforms like Qianwen and Fliggy to optimize supply-side offerings and capture AI-driven traffic opportunities [3] - The rapid development of AI is anticipated to significantly impact the entire cultural and tourism industry, potentially serving as a critical turning point for hotel and travel enterprises [3]

Core Viewpoint - The 2026 Spring Festival travel season has begun, leading to increased demand in the aviation sector, with airlines showing improved performance and public funds benefiting from early investments [1][2]. Group 1: Spring Festival Travel Demand - The Spring Festival travel season started on February 2, 2026, with strong demand for air travel, expected to reach 95 million passengers during the period, with a daily average of 19,400 flights, a 5% year-on-year increase [2][6]. - On the first day of the Spring Festival, the Civil Aviation Administration of China reported 19,080 flights and 2.19 million passengers, marking a 3.8% increase compared to the same day in 2025 [2][6]. Group 2: Airline Performance Improvement - Major airlines are expected to report significant improvements in their financial performance, with China Eastern Airlines projecting a profit of 200 to 300 million yuan for 2025, and Southern Airlines also expected to turn a profit [3][6]. - China Eastern Airlines anticipates a 10.82% increase in total transport turnover and a 6.68% increase in passenger transport volume for 2025 [3]. Group 3: Fund Performance and Investment Strategy - Several public funds that invested in the aviation sector in Q4 2025 have seen substantial returns, with some funds reporting net value growth rates exceeding 8% since the beginning of the year [1][4]. - Fund managers have strategically increased their holdings in key airlines, with notable increases in shares of China Eastern Airlines and Southern Airlines [4][5]. Group 4: Long-term Outlook for the Aviation Sector - The aviation sector is expected to benefit from sustained demand recovery, supply-side optimization, and steady improvement in corporate profitability, supporting valuation recovery [6]. - The investment value of the aviation sector is highlighted by three factors: steady recovery in domestic travel demand, clear performance turning points for airlines, and reasonable historical valuation levels [6].

Core Viewpoint - Morgan Stanley's research report indicates a cyclical improvement in the airline industry starting in Q4 2025, likely gaining momentum in 2026-2027 driven by demand [1] Group 1: Airline Sector Outlook - Investor positioning and confidence remain low, but pricing increases are expected to boost market sentiment, leading to a 42% average target price increase for the airline sector [1] - The three major Chinese airlines' A-share ratings have been upgraded to "Overweight" [1] Group 2: Target Price Adjustments - China National Aviation Holdings (601111) H-share target price raised from HKD 8.11 to HKD 10 [1] - China Eastern Airlines (00670) H-share target price raised from HKD 4.31 to HKD 8.10 [1] - China Southern Airlines (600029) H-share target price raised from HKD 5.33 to HKD 8.50 [1] Group 3: Performance Expectations - Annual passenger load factor is expected to improve by 1-2 percentage points, indicating stronger pricing power for airlines [2] - A positive outlook on a multi-year supply-driven upcycle for Chinese airlines, with potential for profit margins to increase if pricing performs better than expected [2] - For 2026, passenger kilometer revenue is expected to remain flat, followed by a price increase of 3%-4% in 2027 [2] - Profit forecasts for 2027 are 17% higher than market consensus [2] - A 1% increase in passenger kilometer revenue could lead to an average operating profit increase of approximately RMB 1.5 billion to 1.7 billion for the three major airlines [2] - Pre-tax profit forecasts for 2026 have been raised by 14%-20%, and for 2027 by 11%-12% [2]

Group 1 - Thai Lion Air has officially launched a direct flight from Changsha, Hunan to Phuket, Thailand, and has increased the frequency of flights to Bangkok to daily [1] - During the 2026 Spring Festival travel period, Changsha Huanghua International Airport has opened or increased nearly 10 international and regional routes, enhancing travel convenience for passengers [1] - New international routes added this year include flights from Changsha to Yangon, Phuket, Ho Chi Minh City, and Jakarta, along with increased flights to Singapore, Kuala Lumpur, and Bangkok [1] Group 2 - China Southern Airlines has introduced new weekly flights from Changsha to Singapore and Ho Chi Minh City, with each route operating three times a week during the Spring Festival [1] - The passenger load factor for routes from Seoul, Hanoi, and Ho Chi Minh City to Changsha exceeded 70%, while the load factor for the Changsha to Nairobi route surpassed 85% [1] - Xiamen Airlines has launched new direct flights from Changsha to Bangkok and Kuala Lumpur, both operating daily during the Spring Festival, with the first three flights achieving a load factor above 80% [2]

Group 1 - The A-share market saw a strong performance in the duty-free sector, with Zhu Mian Group hitting the daily limit, China Duty Free rising over 5%, and Wangfujing and Haixia shares increasing by over 2% [1] Group 2 - Zhu Mian Group's stock rose by 9.96%, with a total market capitalization of 15.6 billion and a year-to-date increase of 21.59% [2] - China Duty Free's stock increased by 5.52%, with a total market capitalization of 201.6 billion and a year-to-date increase of 3.06% [2] - Wangfujing's stock rose by 2.69%, with a total market capitalization of 16.7 billion and a year-to-date decrease of 4.19% [2] - Haixia shares increased by 2.29%, with a total market capitalization of 23.9 billion and a year-to-date decrease of 12.00% [2] - Hainan Development's stock rose by 1.94%, with a total market capitalization of 14.2 billion and a year-to-date decrease of 29.45% [2] - Southern Airlines' stock increased by 1.82%, with a total market capitalization of 151.7 billion and a year-to-date increase of 4.49% [2] - Lingnan Holdings' stock rose by 1.34%, with a total market capitalization of 8.632 billion and a year-to-date increase of 7.42% [2]

Industry Overview - The China Chemical Products Price Index (CCPI) is reported at 4120 points this week, showing a year-on-year decrease of 5.0% and a month-on-month increase of 1.1% [1] - The CCPI for the previous week was 4066 points, reflecting a year-on-year decline of 6.6% and a month-on-month decrease of 1.0% [1] - The domestic maritime shipping price for liquid chemicals was 168 RMB/ton, down 8.51% year-on-year and 0.62% month-on-month [1] Express Delivery - In December, the express delivery business volume increased by 2.3% year-on-year, with some companies benefiting from price increases due to reduced competition [2] - The total collection volume for postal express from January 26 to February 1 was approximately 4.541 billion pieces, up 60.8% year-on-year and 5.5% month-on-month [2] - The total delivery volume during the same period was about 4.477 billion pieces, reflecting a year-on-year increase of 18.7% and a month-on-month increase of 5.8% [2] - The State Post Bureau forecasts that by 2025, express delivery revenue will reach 1.5 trillion RMB, growing by 6.5% year-on-year [2] Logistics - DSV's integration of DB Schenker is progressing ahead of expectations, with completion anticipated by the end of 2026 [3] - The company is focusing on smart logistics, benefiting from improved demand [3] Aviation and Airports - The average daily flights nationwide decreased by 1.08% year-on-year, with domestic flights down 1.28% [4] - Brent crude oil futures settled at 67.55 USD/barrel, down 4.47% month-on-month and 11.07% year-on-year [4] - The domestic aviation kerosene ex-factory price (including tax) is 5334 RMB/ton, down 4.3% month-on-month and 12.7% year-on-year [4] - The airline sector is expected to see profit elasticity due to supply constraints from aircraft manufacturers and upstream component suppliers [4] Shipping - The container shipping price index (CCFI) is at 1122.15 points, down 4.5% month-on-month and 20.7% year-on-year [5] - The Shanghai Export Container Freight Index (SCFI) is at 1266.56 points, down 3.8% month-on-month and 33.2% year-on-year [5] - The crude oil transportation index (BDTI) increased by 2.1% month-on-month and 88.5% year-on-year, indicating a growing demand for oil transportation [5] - A recent agreement between the U.S. and India to halt Russian oil purchases is expected to boost oil transportation demand [5] Road and Rail Ports - Anhui Expressway completed the acquisition of Shandong Expressway, acquiring 7% of its total share capital at a price of 8.92 RMB/share, totaling 3.019 billion RMB [5] - The total number of freight vehicles on national highways reached 56.83 million, up 4.75% month-on-month and 506.12% year-on-year [5]

Group 1 - The 2026 Spring Festival holiday is expected to boost travel demand, with a projected 9.5 billion trips, a year-on-year increase of approximately 5.3%, setting a new historical record [1] - The civil aviation sector anticipates a passenger transport volume of 95 million during the Spring Festival, also reflecting a growth of about 5.3% compared to the previous year [1] - The Asia-Pacific region's air service market is projected to grow at a compound annual growth rate of 5.2%, reaching a market value of $138.7 billion by 2044, driven by increased passenger volume and fleet expansion [1] Group 2 - High-frequency booking data corroborates official forecasts, indicating strong demand for civil aviation travel, which, combined with steady flight supply, is expected to support improvements in passenger flow and revenue during the Spring Festival [2] - Morgan Stanley upgraded the ratings of China National Aviation (601111), China Eastern Airlines, and China Southern Airlines (600029) to "overweight," anticipating continued momentum in recovery driven by demand [2] - UBS forecasts that China Aviation Leasing (02588) will benefit from accelerated asset growth, with a projected return on equity (ROE) of 11.7% in 2026 and 12.7% in 2027, indicating potential for revaluation [3]