Group 1 - Huawei Cloud has undergone significant management changes, with Chen Lin appointed as the new president for the China region, and Zhang Xiu Zheng transitioning to a role focused on ICT business [2][3] - The Huawei Cloud Marketing and Solution Sales Department (MSSD) has been restructured to enhance sales responsibilities, with Liu Fei leading the new organization [3] - Huawei's AI computing team, led by Zhang Dongsheng, is tasked with optimizing algorithms and frameworks to promote the widespread application of AI computing [2] Group 2 - Xiaomi's founder Lei Jun announced that the company is testing robotic capabilities in its automotive factory, with new chips expected to launch soon [4] - Four-dimensional Map New has signed a strategic cooperation framework agreement with Alibaba Cloud to explore applications in large models, assisted driving, and vehicle networking [5] - The "Ben Yuan Wu Kong" quantum computer has completed over 500,000 quantum computing tasks for users across 143 countries since its launch [5] Group 3 - Tsinghua Unigroup's UCloud has officially begun the delivery of its third phase of the Wulanchabu Intelligent Computing Center, which includes 2,300 cabinets and a total area of approximately 23,000 square meters [6] - iFlytek's Super Brain platform now covers 90% of domestic intelligent robot manufacturers, with 60% utilizing a full-link interaction solution [6] Group 4 - ByteDance's ByteBrain team has developed a new VMR system that reduces inference time to 1.1 seconds while maintaining near-optimal performance [7] - The Hangzhou Embodied Intelligence Industry Alliance has been established to promote collaboration in the field of embodied intelligence [8] Group 5 - JD Smart plans to procure servers worth up to 600 million RMB to support its intelligent computing cloud services [9] - Keling AI has partnered with Lovart to enhance video generation capabilities, significantly improving content creation efficiency [10] Group 6 - ByteDance has released the SeedEdit 3.0 image editing model, capable of processing and generating 4K images with high fidelity [11] - The world's first smart aircraft hangar, developed by Eastern Airlines and Cainiao Group, has been officially put into use, integrating various smart applications [12] Group 7 - DingTalk has updated its version to make multi-dimensional tables completely free, adding over 20 AI field templates [13] - Gaode has launched its first AI navigation agent, NaviAgent, in collaboration with several companies [14] Group 8 - Alibaba has open-sourced the Qwen3-Embedding vector model, which improves performance by 40% compared to the previous version [15] - 360's founder Zhou Hongyi plans to eliminate the entire marketing department to streamline product launches [16] Group 9 - The AI startup Manus has introduced a text-to-video feature that can create complete video stories from text commands [4] - The global semiconductor market is projected to reach $700.9 billion by 2025, driven by demand in AI and cloud infrastructure [23] Group 10 - Nvidia's market value has increased by approximately $1 trillion in two months, with optimistic investor sentiment following recent earnings reports [22] - The Japanese government aims to enhance its intellectual property competitiveness through AI and advanced technologies [21]

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]

Investment Rating - The report maintains a "Buy" rating for the transportation sector [8] Core Views - The report is optimistic about the aviation sector, anticipating a recovery in industry prosperity driven by the summer travel peak and favorable oil and exchange rates [2][28] - It recommends high-dividend Hong Kong-listed road stocks due to stable performance and low Hibor rates supporting dividend valuations [2] - The report notes increased volatility in the shipping sector, particularly in container shipping, while highlighting the need to focus on companies with stable earnings and high dividend yields [2] Aviation Sector - The report highlights strong demand during the May Day holiday, with daily passenger volume averaging 2.23 million, a year-on-year increase of 11.8% [20] - Domestic flight ticket prices have improved, with an average price of 730 RMB, up 0.8% year-on-year [15] - The supply of aircraft is expected to grow slowly, with a projected increase of only 2.8% in the passenger fleet by the end of 2024 [21] - Recommended stocks include China National Aviation, China Eastern Airlines, and Huaxia Airlines, which are expected to benefit from supply-demand improvements [28] Airport Sector - Airports are experiencing high growth in passenger traffic, particularly in southern China, with Baiyun Airport and Shenzhen Airport seeing year-on-year increases of 26.3% and 23.5% respectively [29] - The report emphasizes the need for airports to enhance their non-aeronautical revenue generation capabilities [37] - It suggests focusing on airports with lower capital expenditure, such as Capital Airport, for better investment value [37] Shipping Sector - Container shipping rates have increased significantly, with the Shanghai Export Container Freight Index rising by 18.4% month-on-month in May [4] - The report anticipates further increases in shipping volumes and rates in June due to the easing of tariffs and seasonal demand [39] - It notes that while the crude oil tanker market is improving due to OPEC+ production increases, the dry bulk and product tanker markets remain weak [38] Road and Rail Sector - The report indicates that the road sector is benefiting from lower Hibor rates, which support dividend yields, and suggests focusing on high-dividend stocks like Wuhu Highway and Zhejiang Hu-Hangzhou-Ningbo [5] - The railway freight sector is experiencing weak demand, particularly for coal transport, with expectations of a recovery only in late June [5] Logistics and Express Delivery - The express delivery sector is facing competitive pressures, with a year-on-year increase in parcel volume of 19.1% in April, but prices are declining [68] - The report suggests monitoring the upcoming peak season for potential changes in volume and pricing dynamics [68] - It highlights the need for cross-border logistics to adapt to evolving tariff conditions [68]

Group 1 - China Eastern Airlines won multiple awards at the 2025 CAPSE Annual Summit, including "Most Valuable Domestic Chinese Airline Brand" and "Excellence in Customer Service and Ticketing" [2] - The airline's brand building is a core strategy, focusing on enhancing brand competitiveness through various initiatives, including revising brand management guidelines and launching a new visual identity [2] - China Eastern Airlines has been recognized in the top 30 for brand building capabilities by the State-owned Assets Supervision and Administration Commission and ranked among the top 50 most valuable Chinese brands by BrandZ [2] Group 2 - The "Excellence in Customer Service and Ticketing" award highlights the airline's achievements in customer service and ticketing innovation, with significant advancements in digital transformation over the past year [4] - The airline has implemented a 20-second response time for customer service calls and enhanced its intelligent customer service project, benefiting nearly 4,000 travelers through video customer service [4] - China Eastern Airlines has introduced a cross-airline no-loss ticket refund mechanism, improving the convenience of ticket changes for passengers [4] Group 3 - The "Excellence in Flight Irregularity Service" award recognizes the airline's effective response to flight delays and irregularities, adhering to a service philosophy that emphasizes responsibility and proactive communication [5] - The airline has launched a flight rescheduling service at Shanghai Hongqiao Airport, allowing passengers to change flights upon arrival, and introduced an electronic voucher compensation mechanism for delayed flights [5] - China Eastern Airlines has systematically improved its emergency response plans and operational coordination to minimize the impact of extreme weather on passenger travel [5] Group 4 - The summit focused on "Reshaping Service Product Second Curve, Enhancing Service Brand Monetization Capability," attracting nearly 200 top managers and experts from the civil aviation industry [7] - The airline plans to continue deepening its service philosophy and explore new paths for "Aviation+" integration, leveraging digitalization to enhance customer service experiences [7]

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]

FF305 第 1 頁 共 10 頁 v 1.3.0 | 1). | 購回股份擬註銷但尚未註銷 | | 450,000 | 0.002 % | HKD | 2.45 | | --- | --- | --- | --- | --- | --- | --- | | | 變動日期 | 2025年1月9日 | | | | | | 2). | 購回股份擬註銷但尚未註銷 | | 1,650,000 | 0.0074 % | HKD | 2.42 | | | 變動日期 | 2025年1月10日 | | | | | | 3). | 購回股份擬註銷但尚未註銷 | | 4,000 | 0.00002 % | HKD | 2.72 | | | 變動日期 | 2025年1月20日 | | | | | | 4). | 購回股份擬註銷但尚未註銷 | | 1,700,000 | 0.0076 % | HKD | 2.44 | | | 變動日期 | 2025年2月3日 | | | | | | 5). | 購回股份擬註銷但尚未註銷 | | 1,800,000 | 0.0081 % | HKD | 2.45 | | | 變動日期 | 2025年 ...

Investment Rating - The industry investment rating is "Overweight" [2][4] Core Insights - The report highlights a long-term logic for a "super cycle" in the Chinese aviation industry, driven by sustained demand and a low growth supply environment. The report suggests that the industry is entering a phase of low supply growth while demand continues to grow steadily [2][4] - The report anticipates a gradual recovery in supply and demand from 2023 to 2024, with ticket prices expected to rise as demand strengthens. By 2025-2026, the report predicts further improvements in supply-demand dynamics, leading to increased profitability for airlines [4][9] - The report emphasizes the importance of strategic positioning during this low growth phase, recommending an overweight position in high-quality airline networks such as China National Aviation, Spring Airlines, and others [4][9] Summary by Sections Supply and Demand Dynamics - The report notes that the supply side is entering a low growth era, influenced by internal factors such as airspace constraints and a slowdown in fleet expansion plans by airlines. External factors include slow recovery in aircraft manufacturing post-pandemic [4][9] - Demand is expected to remain robust, driven by a growing aviation population and the release of pent-up demand, transitioning into a new normal by 2023-2024 [4][9] Pricing and Profitability - The report indicates that ticket prices have become largely market-driven, with expectations for price increases as demand recovers. The combination of rising ticket prices and declining oil prices is projected to accelerate profitability recovery for airlines [4][9] - The report forecasts that by 2025, airlines will experience a significant recovery in profitability, with expectations for improved performance during peak travel seasons [4][9] Strategic Recommendations - The report advises investors to focus on long-term opportunities in the aviation sector, particularly in high-quality airline networks. It recommends an overweight position in specific airlines such as China National Aviation, Southern Airlines, and Spring Airlines [4][9]

Group 1 - During the Dragon Boat Festival holiday (May 31 - June 2), China Southern Airlines Logistics Co., Ltd. (CSAL) transported over 11,000 tons of cargo and mail, showing significant growth compared to the same period last year [1] - CSAL enhanced logistics efficiency by utilizing big data to predict peak cargo volumes, optimizing capacity resources, and increasing the cargo load factor on popular domestic routes by 10% [1] - The company improved its cold chain logistics capabilities for fresh products, speeding up the delivery process from unloading to delivery by 20%, with domestic fruit and vegetable cargo volumes increasing by over 20% and seafood by over 50% [1] Group 2 - CSAL implemented measures such as staggered warehousing, charter flights, and accelerated cargo flow to leverage the high efficiency of air logistics [2] - The company introduced reusable packaging materials in collaboration with express delivery companies to reduce single-use materials, contributing to green logistics [2] - As the "618" shopping festival approaches, CSAL plans to innovate and deepen its multimodal transport system, expanding its overseas logistics layout to provide comprehensive logistics services for Chinese brands and international clients [2]

Core Points - Eastern Airlines has increased the frequency of flights transporting lychees, with daily shipments nearing 50 tons as the lychee harvest peaks in Guangdong [1][2] - The logistics team at Eastern Airlines has implemented a rapid response mechanism to ensure the freshness of lychees during transportation, minimizing ground handling time [2] - The successful transportation of lychees highlights Eastern Airlines' commitment to supporting regional agricultural products and enhancing the logistics service for seasonal fruits [2] Summary by Sections Transportation Efficiency - On June 4, a flight carrying 1 ton of lychees successfully arrived in Shanghai after a flight duration of 1 hour and 47 minutes [1] - The logistics team has optimized processes to ensure lychees are delivered in the best quality, reducing ground handling time to the minimum [2] Agricultural Support - The current lychee season in Guangdong is marked by a bumper harvest, prompting Eastern Airlines to enhance its logistics capabilities [2] - Eastern Airlines aims to create a comprehensive transportation support system for regional agricultural products, ensuring timely delivery to consumers nationwide [2]

Core Viewpoint - China Eastern Airlines has launched its first international transit flight from Auckland to Hangzhou, enhancing connectivity and operational efficiency for travelers [4][5]. Group 1: Flight Operations - The MU878 flight from Auckland to Hangzhou successfully transported 121 transit passengers who cleared customs at Hangzhou Xiaoshan International Airport [4]. - Since the launch of international transit flight services at Hangzhou airport in October 2024, nine international transit routes have been established [4]. Group 2: Passenger Experience - Passengers on international transit flights can complete check-in and baggage handling at the departure station and go through customs at the transit location, streamlining the travel process [5]. - The service allows travelers to avoid re-checking luggage and reissuing tickets during transit, saving time and effort [5]. Group 3: Market Expansion - China Eastern Airlines aims to build a passenger network centered around Hangzhou, connecting domestic cities and international destinations, particularly intercontinental routes [5]. - The airport customs have facilitated the operation of 112 international transit flights and processed 1,610 transit passengers this year [6].