Core Points - China Eastern Airlines Logistics has launched a new direct cargo flight route from Shanghai to Paris, enhancing the "Air Silk Road" between China and Europe [1][3] - The new route responds to the increasing demand for air cargo between China and France, facilitating a more efficient logistics support for expanding trade [3] Group 1 - The inaugural flight of the CK203 cargo service took off from Shanghai Pudong International Airport at 5:58 AM on November 20 [1] - The route operates three round trips per week using Boeing 777 freighters, focusing on machinery, clothing, chemicals, and raw materials [3] - The Paris hub connects with existing European destinations such as Amsterdam, Frankfurt, and Budapest, creating a comprehensive cargo network across Western and Central Eastern Europe [3] Group 2 - The new service allows for rapid distribution of goods to major European cities within 48 hours of arrival at Charles de Gaulle Airport, significantly improving logistics efficiency [3] - In 2023, China Eastern Airlines has also opened several passenger routes to European cities including Copenhagen, Milan, Geneva, and Barcelona, with plans to further expand its European network [3]

Core Viewpoint - The launch of the direct cargo flight route from Shanghai to Paris by Eastern Airlines Logistics marks a significant step in enhancing Sino-French economic cooperation and promoting the collaborative development of supply chains between Asia and Europe [1][3]. Group 1: Market Demand and Logistics Support - The air cargo volume from China to France has been steadily increasing, while the import air cargo flow from France to China has stabilized, creating a positive bilateral trade environment [3]. - The new route responds to the demand in the China-Europe air cargo market and aims to provide efficient and reliable logistics support for expanding trade scale [3]. Group 2: Operational Details - The route operates with a B777 freighter, offering three round trips per week, primarily transporting machinery and apparel on outbound flights, and focusing on chemical products and raw materials on return flights [3][4]. - Paris Charles de Gaulle Airport serves as a key hub, facilitating rapid distribution of goods to major European cities within 48 hours, thereby significantly enhancing overall logistics efficiency between China and Europe [3]. Group 3: Strategic Expansion - The launch of this cargo route is part of Eastern Airlines' strategy to expand internationally and tap into emerging markets, reinforcing its commitment to a dual passenger and cargo operation model [4]. - Eastern Airlines has been operating passenger flights on the Shanghai-Paris route for over 20 years, increasing flight frequency from three to twelve per week, which provides a solid foundation for the new cargo service [4]. - The company plans to continue expanding its European network and explore new routes in Central and Eastern Europe, further strengthening the "Air Silk Road" between China and Europe [4].

Core Insights - The logistics sector experienced a decline of 0.3% on November 19, with Longzhou Co. leading the drop [1] - The Shanghai Composite Index closed at 3946.74, up 0.18%, while the Shenzhen Component Index closed at 13080.09, unchanged [1] Stock Performance - ST Xuefa (002485) saw a significant increase of 4.94%, closing at 5.10 with a trading volume of 54,200 shares and a turnover of 27.61 million yuan [1] - Longzhou Co. (002682) led the decline with a drop of 9.95%, closing at 7.06 with a trading volume of 2.24 million shares and a turnover of 1.648 billion yuan [2] - Other notable performers included Huapei (300350) with a 4.70% increase and Dongfang Jiasheng (002889) with a 4.07% increase [1] Capital Flow - The logistics sector saw a net outflow of 252 million yuan from institutional investors, while retail investors contributed a net inflow of 194 million yuan [2] - The table of capital flow indicates that Dongfang Jiasheng (002889) had a net inflow of 44.26 million yuan from institutional investors, while it faced a net outflow of 22.33 million yuan from retail investors [3]

Core Viewpoint - A batch of precious cultural relics from the National Museum of China, weighing a total of 619 kilograms, has been successfully transported for an exhibition, showcasing Chinese civilization to a global audience [1][4]. Group 1: Logistics and Transportation - The relics were transported by Eastern Airlines Logistics North China Branch, which established a specialized support team to ensure the safe transport of the artifacts [4]. - High-strength straps were used to scientifically secure the relics to the pallets during the assembly phase, enhancing their resistance to shocks and vibrations [4]. - The artifacts were stored in a dedicated isolation area monitored by 24-hour video surveillance, ensuring physical separation from regular cargo to mitigate risks [4]. Group 2: Experience and Future Plans - Eastern Airlines Logistics North China Branch has previously handled the transportation of cultural relics for the National Museum of China, gaining extensive experience in the cross-border transport of high-value artworks [4]. - The company plans to continue focusing on the "cultural export" sector, aiming to safely and timely present more Chinese treasures on the world stage, highlighting the depth and contemporary relevance of Chinese civilization [4].

Investment Rating - The report rates the transportation industry as "Outperform" [1] Core Insights - Crude oil freight rates initially declined but then increased, with a divergence in container shipping rates on long-distance routes. The China Import Crude Oil Composite Index (CTFI) rose to 2231.96 points, up 9.5% from November 6 [2][13] - Volant Aviation completed a multi-hundred million yuan Series B financing round, and the C919 aircraft made its debut at the Dubai Airshow [2][15] - Jitu Express reported over 100 million packages on "Double Eleven," marking a 9% year-on-year increase, with an average daily package volume of 94.59 million during the peak season [2][23] Summary by Sections Industry Hot Events - Crude oil freight rates fluctuated, with the CTFI at 2231.96 points, a 9.5% increase from November 6. The VLCC market is optimistic about future rates due to tight vessel availability [2][13] - Volant Aviation's Series B financing was led by Huaying Capital, with existing shareholders also increasing their investments. The C919 aircraft is set to showcase its capabilities at the 2025 Dubai Airshow [2][15] - Jitu Express achieved a record-breaking package volume during "Double Eleven," with a total of 1.3938 billion packages collected nationwide from October 21 to November 11, reflecting a 17.8% increase in daily average volume [2][25] High-Frequency Dynamic Data Tracking - The Baltic Air Freight Price Index increased month-on-month but decreased year-on-year. The Shanghai outbound air freight price index was 5356.00 points, down 2.5% year-on-year [27][28] - Domestic freight flights increased by 0.32% year-on-year, while international flights rose by 11.12% [28] - The SCFI index reported a decrease of 2.92% week-on-week, while the CCFI index increased by 3.39% week-on-week [35] Investment Recommendations - Focus on the equipment and manufacturing industrial products export chain, recommending companies like COSCO Shipping Specialized, China Merchants Energy Shipping, and Huamao Logistics [4] - Attention to the transportation demand increase driven by the construction of hydropower stations in the Yarlung Tsangpo River downstream [4] - Investment opportunities in the low-altitude economy, with a recommendation for CITIC Offshore Helicopter [4] - Recommendations for highway and railway sectors, including Gansu Expressway and Beijing-Shanghai High-Speed Railway [4] - Opportunities in the cruise and ferry sectors, recommending Bohai Ferry and Straits Shares [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, Southern Airlines, and Spring Airlines [4]

Core Insights - China Eastern Airlines Logistics has launched its own charter flights for transporting fresh cherries from Chile, marking a new milestone in the importation process with a record transportation time of approximately 24 hours from Chile to Shanghai [1][4]. Group 1: Operational Highlights - The "Donghang Cold Chain" flight CK292 is set to transport 88.75 tons of fresh cherries, further enhancing the logistics capabilities of China Eastern Airlines in the fresh produce sector [1][4]. - Over 1,100 tons of cherries have already been transported to various ports in China, including Wuhan, Shanghai, Zhengzhou, Shenzhen, Hefei, Ningbo, and Hong Kong, showcasing the extensive operational reach of the company [4]. - The logistics operation integrates resources from nine major global airlines, creating a high-frequency and high-density flight schedule to optimize the supply chain for fresh produce [4]. Group 2: Technological Integration - The use of digital tools such as the "Dongdong Monitoring" temperature control system and the "Flying Fresh" intelligent scheduling platform allows for transparent management of the entire logistics process, from harvesting to delivery [4]. - This technological integration aims to ensure that consumers across different regions in China can access high-quality imported cherries at reasonable prices [4]. Group 3: Market Position and Strategy - Chile has been a key partner in agricultural trade with China, being the largest source of cherry imports for over a decade, and China Eastern Airlines Logistics has maintained its position as the largest air carrier and importer of Chilean cherries in China for twelve consecutive years [5]. - The company is actively enhancing its global fresh supply chain capabilities and is committed to supporting the dual circulation development strategy in China, contributing to the construction of Shanghai as an international shipping center [5]. - Future operational strategies will focus on optimizing the model of "bulk orders, partial shipments" to ensure broader coverage, faster delivery, and stable quality for consumers [5].

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a revenue of 59.9 billion yuan in Q3 2025, a year-on-year decline of 6.2%, and a net profit attributable to shareholders of 7.1 billion yuan, down 9.8% year-on-year. The decline in revenue was influenced by the cancellation of U.S. small package tariff policies, which led to a decrease in cross-border e-commerce cargo volume [2][4]. - Despite the revenue decline, the company's gross profit margin improved by 1.6 percentage points to 21.6% in Q3, indicating stable profitability. The company has been actively introducing cargo aircraft and optimizing operational routes, which contributed to this improvement [2][8]. - The report highlights that the company has passed stress tests, demonstrating resilience. With the improvement in China-U.S. trade relations, there are opportunities for recovery in general cargo demand, and freight rates are expected to have upward elasticity [2][8]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported total revenue of 172.5 billion yuan, a decrease of 2.4% year-on-year, and a net profit of 20.0 billion yuan, down 3.2% year-on-year. In Q3 alone, revenue was 59.9 billion yuan, and net profit was 7.1 billion yuan [4][6]. - The revenue breakdown for Q3 shows that air express services, ground comprehensive services, and comprehensive logistics solutions generated revenues of 27.9 billion yuan, 7.0 billion yuan, and 25.0 billion yuan, respectively, with year-on-year changes of +22.6%, +9.2%, and -27.9% [8]. Operational Insights - The average TAC price index decreased by approximately 6% year-on-year, and the average utilization rate of cargo aircraft fell by about 12%. However, the number of available cargo aircraft increased year-on-year, and the company adjusted its operational routes to enhance efficiency [8]. - The company faced increased financial expenses due to rising leasing debts from new aircraft acquisitions, and government subsidies decreased, impacting profits [8]. Future Outlook - The report anticipates that the net profit attributable to shareholders will be 26.5 billion yuan, 29.5 billion yuan, and 33.5 billion yuan for the years 2025 to 2027, corresponding to P/E ratios of 10.1, 9.0, and 8.0 times, respectively [8].

Investment Rating - The report maintains a positive outlook on cyclical sectors, indicating that quality dividend stocks still have upward potential [1]. Core Insights - The transportation industry showed stable performance in the first three quarters of 2025, with infrastructure sector key stocks meeting expectations, shipping stocks recovering, and express delivery volumes and prices increasing due to anti-involution policies [1][7]. - The report emphasizes the importance of monitoring cyclical sector fundamentals and highlights the potential for further gains in quality dividend stocks [1][7]. Summary by Sections Overview of the Transportation Sector - The overall performance of the transportation industry from the beginning of 2025 to November 10 showed an increase of 8.5%, underperforming compared to the Shanghai and Shenzhen 300 index, which rose by 31.6% [11]. - The logistics sector benefited from anti-involution policies, while infrastructure sectors like highways and railways experienced declines [11]. Highway Sector - In the first three quarters of 2025, highway passenger transport decreased by 2.6% year-on-year, while freight transport increased by 4.1% [16]. - The performance of listed companies varied, with some showing stable toll revenue while others faced declines due to network adjustments and acquisitions [16][17]. Port Sector - National port cargo throughput reached 1.357 billion tons, a year-on-year increase of 4.6%, with container throughput growing by 6.3% [18]. - Key companies like China Merchants Port and Qingdao Port maintained stable performance, while Tangshan Port showed significant recovery in Q3 [18][19]. Railway Sector - Railway passenger volume grew by 6% year-on-year, while freight volume increased by 2.8% [22]. - The report anticipates continued growth in passenger transport, driven by new projects, although freight transport may face challenges due to economic conditions [22]. Shipping Sector - The shipping sector experienced a decline in container shipping rates in the first three quarters, but Q3 showed signs of recovery [25]. - The report forecasts improved performance for oil tanker companies in Q4 and 2026 due to favorable market conditions [28]. Express Delivery Sector - The express delivery industry saw a 17.2% increase in business volume in the first three quarters, although average prices fell by 7.1% [30]. - The report predicts a return to price increases in Q4, driven by anti-involution policies, with overall profitability expected to improve [31]. Logistics Supply Chain Sector - Cross-border air transport demand remained resilient, with a 6.4% year-on-year increase in cross-border e-commerce imports and exports [32]. - The report suggests that contract logistics volumes are expected to stabilize as economic conditions improve [33]. Aviation Sector - The aviation industry reported a 9.1% year-on-year increase in passenger turnover, with domestic routes showing a 4.2% increase [35]. - The report anticipates a significant reduction in losses for the industry in Q4, with a potential for profit recovery in 2026 [36]. Airport Sector - The airport sector experienced a 4.4% year-on-year increase in passenger throughput, with significant growth in international travel [38]. - The report highlights the ongoing recovery in airport operations and profitability due to increased passenger volumes and improved cost management [38].

Core Insights - Eastern Airlines Logistics is proactively preparing for the 2025 "Double Eleven" shopping festival by implementing a "super long standby" model to enhance consumer engagement and manage the anticipated logistics peak [1][2] Group 1: Operational Strategy - From October 21 to November 11, Eastern Airlines Logistics plans to support over 30,000 inbound and outbound flights at Shanghai Pudong and Hongqiao airports, handling nearly 150,000 tons of cargo, which represents a year-on-year increase of nearly 10% [1][2] - The company utilizes dynamic analysis of flight loading data and historical sales trends to accurately forecast cargo volume, providing data support for full-process operations [2] Group 2: Emergency Preparedness - Eastern Airlines Logistics has established a cross-department emergency team, increased on-site operational personnel, extended cargo collection and transportation time limits, and opened dedicated security inspection channels to enhance operational capabilities [2] - Collaboration with airport authorities includes implementing dual-door security checks and a "double entry and exit" vehicle model to streamline the entire cargo handling process [2] Group 3: Network Expansion - The company is accelerating the development of a global hub network, recently launching all-cargo routes such as "Shanghai-Riyadh-Budapest" and "Shanghai-Chongqing-Frankfurt" to facilitate e-commerce shipments during the "Double Eleven" period [2] - Eastern Airlines Logistics is deepening partnerships with supply chain stakeholders to offer customized logistics solutions and comprehensive services from receipt, warehousing, transportation to customs clearance [2] Group 4: Cargo Stability and Reliability - The company is focusing on the stability and reliability of logistics services by securing local specialty cargo sources, such as crabs and ornamental fish, and planning shipping volumes in advance to stabilize main route cargo [2] - Continuous development of transit station points in the air network is being prioritized to ensure the quality and efficiency of cargo transportation [2]

Core Viewpoint - The logistics sector experienced a decline of 0.42% on November 11, with ST Xuefa leading the losses, while the Shanghai Composite Index closed at 4002.76, down 0.39% [1]. Group 1: Market Performance - The logistics sector's individual stock performance showed mixed results, with notable gainers including ST Yuanshang (+5.01%) and Chuanhua Zhili (+4.77%), while ST Xuefa fell by 5.07% [1][2]. - The trading volume for Chuanhua Zhili reached 1.31 million shares, with a transaction value of 857 million yuan, indicating strong market interest [1]. Group 2: Capital Flow - The logistics sector saw a net outflow of 356 million yuan from institutional investors, while retail investors contributed a net inflow of 374 million yuan [2]. - The capital flow data indicates that while institutional investors withdrew funds, retail investors were actively buying into the sector [2][3]. Group 3: Individual Stock Analysis - ST Xuefa had a significant drop in share price, closing at 4.68 yuan with a trading volume of 202,900 shares and a transaction value of 96.83 million yuan [2]. - Other notable declines included Yunda Holdings (-0.66%) and China Foreign Trade (-1.55%), reflecting a broader trend of selling pressure in the logistics sector [2].