Investment Rating - The transportation industry is rated as "Outperform" [2] Core Insights - Crude oil freight rates have decreased, and long-distance shipping rates have also declined. The China Import Crude Oil Composite Index (CTFI) reported 2037.91 points on November 6, down 16.0% from October 30. The VLCC market is seeing a gradual entry of cargoes for late November, with a balanced supply of available vessels [3][14] - The Yufeng Future M1 aircraft has received over 2 billion yuan in orders, with 200 units ordered from domestic and international clients. The International Air Transport Association (IATA) has added the Chinese yuan as a settlement currency, expected to be operational by December 2025 [3][16][17] - China Post and COSCO Shipping have signed a strategic cooperation agreement, and ZTO Express has launched four new logistics hubs to enhance service efficiency during peak seasons [3][24][25] Industry High-Frequency Data Tracking - **Air Cargo**: The Baltic Air Freight Index has increased month-on-month but decreased year-on-year. The Shanghai outbound air freight price index was 5366.00 points, down 2.3% year-on-year but up 7.1% month-on-month [26] - **Shipping Ports**: The SCFI index reported 1495.10 points, down 3.59% week-on-week and down 35.88% year-on-year. The CCFI index was 1058.17 points, up 3.60% week-on-week but down 23.78% year-on-year [36] - **Express Logistics**: In September 2025, express delivery volume increased by 12.70% year-on-year, with revenue rising by 7.20%. Cumulative express delivery volume for the first nine months of 2025 reached 1450.8 billion pieces, up 17.20% year-on-year [48] Investment Recommendations - Focus on the equipment and manufacturing export chain, recommending COSCO Shipping, China Merchants Energy Shipping, and Huamao Logistics. Attention is also drawn to Eastern Airlines Logistics and China Foreign Trade [5] - Opportunities in low-altitude economy investments are highlighted, recommending CITIC Offshore Helicopter [5] - Investment opportunities in the highway and railway sectors are suggested, recommending Ganyue Expressway, Beijing-Shanghai High-Speed Railway, and others [5] - The report also suggests investment opportunities in the cruise and ferry sectors, recommending Bohai Ferry and Straits Shares [5]

Core Insights - The eighth China International Import Expo (CIIE) is witnessing a significant increase in trade activities, with over 700 trade sub-groups and a professional audience registration reaching 449,500 [1] - Major signing events are taking place, with nearly 200 buyers and exhibitors reaching intended cooperation agreements [1] - The event is facilitating international trade relationships, as evidenced by successful partnerships between Chinese and foreign companies [2] Group 1: Trade Activities - A total of 43 trade delegations and over 700 trade sub-groups are participating in the expo, indicating strong international interest [1] - The signing area has hosted over 70 concentrated signing activities, showcasing the active engagement of buyers and sellers [1] - China Eastern Airlines signed 19 procurement agreements with suppliers from 9 countries, totaling $1.211 billion, marking a significant achievement for central enterprises [1] Group 2: International Cooperation - The Southern Airlines Group achieved a signing amount exceeding $2 billion, setting a new high in the past six years [2] - E-commerce platforms are evolving into "buying groups," with Meituan Health signing agreements with seven global pharmaceutical companies [2] - Schneider Electric showcased multiple original Chinese innovations and signed agreements with over 40 key clients across various industries [2] Group 3: Sector-Specific Developments - The Brazilian pavilion highlighted the growing agricultural cooperation between Brazil and China, with significant investments from both sides [1] - A Ningxia wine company secured its first direct order from a Portuguese cork factory, demonstrating the expanding trade relationships [1] - Novo Nordisk, a Danish biopharmaceutical company, presented 13 innovative drugs and announced several important collaborations at the expo [2]

Core Insights - China Eastern Airlines Jiangsu Co., Ltd. has undergone significant changes in its shareholder structure and registered capital, indicating a strategic shift in its ownership and financial positioning [1][2]. Shareholder Changes - Jiangsu Provincial Guoxin Group Co., Ltd. has exited as a shareholder, while Nanjing Railway Construction Investment Co., Ltd. and Eastern Airport Group Co., Ltd. have been added as new shareholders [1][3]. - The current shareholders now include China Eastern Airlines Co., Ltd., Jiangsu Transportation Holding Co., Ltd., and the newly added companies [1]. Capital Increase - The registered capital of the company has increased from 2 billion RMB to 4 billion RMB, representing a 100% increase [1][3].

Core Viewpoint - The domestic airline stocks have risen in early trading, driven by positive earnings reports for Q3 2025 from major airlines, indicating a potential "super cycle" in the industry due to increased demand and rising ticket prices [1] Group 1: Airline Stock Performance - Eastern Airlines (00670) increased by 3.26%, trading at 4.44 HKD - Air China (601111) (00753) rose by 2.91%, trading at 6.36 HKD - Southern Airlines (600029) (01055) gained 2.63%, trading at 5.08 HKD - Capital Airport (00694) saw a rise of 1.06%, trading at 2.85 HKD [1] Group 2: Financial Performance - Major domestic airlines reported revenue growth and profitability for Q3 2025, supported by summer travel and foreign exchange gains - The combined net profit of the three major airlines after excluding non-recurring items reached 10.27 billion, an increase from 9.19 billion in the same period last year [1] Group 3: Market Outlook - According to Guotai Junan Securities, October is expected to see a 5% year-on-year increase in passenger traffic due to strong private travel and active business travel post-holiday - Domestic jet fuel prices remained stable year-on-year, while ticket prices increased by 3-4%, further expanding from September - The Chinese aviation industry is anticipated to achieve profitability in October, outperforming typical seasonal performance - The industry is expected to enter a "super cycle," driven by market-driven ticket pricing, steady demand growth, and optimized passenger structure, which will elevate the profit center for airlines by 2026 [1]

Group 1 - China Eastern Airlines has resumed its flight route from Shanghai Pudong International Airport to Delhi, India, with a passenger load factor exceeding 95% on its inaugural flight, carrying 248 passengers [1] - This marks the first resumption of direct flights between China and India in five years, with China Eastern becoming the first Chinese airline to restore passenger flights between the two countries by 2025 [1] - The route will operate three times a week on Wednesdays, Saturdays, and Sundays, indicating a significant step towards revitalizing air travel between China and India [1] Group 2 - The resumption of direct flights is seen as a positive development for improving Sino-Indian relations, although the future trajectory of these relations remains uncertain [2] - Continuous interaction and mutual understanding are essential for achieving lasting trust and resolving differences between the two nations [2]

Core Points - China Eastern Airlines has resumed its flight route from Shanghai Pudong International Airport to Delhi, marking the first Chinese airline to restore passenger flights between China and India since 2025, after a five-year hiatus [1] - The inaugural flight carried 248 passengers with a seat occupancy rate exceeding 95%, operating three times a week on Wednesdays, Saturdays, and Sundays [1] - The restoration of direct flights is seen as a significant step in enhancing economic and diplomatic relations between China and India, benefiting travelers by eliminating the need for multiple transfers [1] - Indian airline Indigo has also resumed direct flights, with plans to operate daily flights from Kolkata to Guangzhou and from Delhi to Guangzhou starting November 10 [1] Industry Insights - The resumption of direct flights between China and India has garnered significant international media attention, indicating a revitalization of air connectivity between the two nations [1] - Analysts suggest that while the restoration of direct flights injects positive momentum into Sino-Indian relations, the future trajectory of these relations remains uncertain and requires ongoing interaction and mutual understanding to resolve differences [2]

Group 1 - The eighth China International Import Expo has seen significant procurement amounts from Chinese companies, with Shanghai Zhenhua Heavy Industries Group signing contracts worth 2.8 billion RMB, setting a historical record [1] - China National Cereals, Oils and Foodstuffs Corporation (COFCO) has signed contracts exceeding 10 billion RMB for high-quality agricultural products and specialty foods during the expo [1] - China Southern Airlines Group's transaction amount exceeded 2 billion USD, marking a six-year high, while China Eastern Airlines signed 19 procurement agreements totaling 1.211 billion USD [1] Group 2 - China Coal Energy Group's subsidiary, China Coal Pingshuo Group, signed a procurement framework agreement with Michelin for giant tires, aiming to promote green and low-carbon development in the mining sector [2] - Nanjing Hongzhao Company has deepened cooperation with German exhibitor Heraeus, focusing on the integration of optoelectronic innovation technologies and high-quality development in industries such as optical fiber, AI, and big data [2]

Core Viewpoint - Eastern Airlines has officially resumed the "China-India route" after five years, marking a significant step in enhancing connectivity between the two countries [1] Group 1: Route Details - The resumed route is from Shanghai Pudong International Airport to Delhi, operated by an Airbus A330 wide-body aircraft, with three flights per week on Wednesdays, Saturdays, and Sundays [1] - The inaugural flight had a passenger load factor exceeding 95%, indicating strong demand for the route [1] Group 2: Strategic Importance - The Shanghai-Delhi route is considered one of the most strategically significant air corridors between China and India, facilitating comprehensive exchanges in trade and culture between the two major economic centers [1] - Eastern Airlines plans to adjust flight frequency based on market feedback and aims to restore the Kunming to Kolkata route and introduce a new route from Shanghai Pudong to Mumbai, further enhancing the air route network between China and India [1] Group 3: Connectivity and Services - Passengers arriving in China can easily connect to domestic flights to major cities and international routes to destinations in North America, Japan, and South Korea, leveraging Eastern Airlines' network and convenient transfer services at Pudong Airport [1]

Core Viewpoint - Eastern Airlines has officially resumed the "China-India route" after a five-year hiatus, marking a significant development in air travel between the two countries, with the first flight achieving a seat occupancy rate exceeding 95% [1][3]. Group 1: Route Details - The resumed route operates from Shanghai Pudong International Airport to Delhi, utilizing Airbus A330 wide-body aircraft, with three flights scheduled weekly [3]. - This route is considered one of the most strategically significant air passages between China and India, facilitating closer economic and cultural exchanges between Shanghai and Delhi [3]. Group 2: Future Plans - Eastern Airlines plans to adjust flight frequencies based on market feedback and aims to restore the Kunming to Kolkata route, as well as introduce a new route from Shanghai Pudong to Mumbai, enhancing the air route network between China and India [3]. - The airline's network at Pudong Airport allows passengers to easily connect to major cities in China and international destinations in North America, Japan, and South Korea [5]. Group 3: Connectivity - Delhi's Indira Gandhi International Airport serves as a major aviation hub in India, providing strong connectivity for travelers to various Indian cities and facilitating access to South Asia, the Middle East, and parts of Europe and Africa [5].

Core Points - Eastern Airlines has resumed its first passenger flight on the China-India route after five years, marking a significant milestone in the aviation industry [1] - The inaugural flight from Shanghai Pudong International Airport to Delhi had a seat occupancy rate exceeding 95% [1] Group 1: Flight Operations - The resumed route operates with an Airbus A330 wide-body aircraft, with three flights per week on Wednesdays, Saturdays, and Sundays [4] - Flight MU563 departs Shanghai at 12:50 and arrives in Delhi at 17:45 local time, while the return flight MU564 leaves Delhi at 19:55 and arrives in Shanghai at 04:10 the next day, with a total flight duration of approximately 8 hours [4] Group 2: Future Plans - Eastern Airlines plans to adjust the frequency of flights based on market feedback and aims to restore the Kunming to Kolkata route, as well as introduce a new route from Shanghai Pudong to Mumbai [3] - The airline is focused on expanding its network between China and India to enhance connectivity [3] Group 3: Connectivity and Transfer Services - Eastern Airlines offers convenient transfer services at Pudong Airport, allowing passengers to connect to major cities in China and international destinations in North America, Japan, and South Korea [6] - Delhi's Indira Gandhi International Airport serves as a major aviation hub in India, providing strong transfer capabilities for passengers traveling to various cities in India, as well as to South Asia, the Middle East, and parts of Europe and Africa [6]