Core Viewpoint - China Eastern Airlines has launched a new all-cargo flight route from Shanghai to Budapest via Riyadh, marking its first fifth-freedom cargo route in the Middle East, aimed at enhancing logistics services and connecting markets in China, the Middle East, and Europe [1] Group 1: Route Details - The new cargo route will operate three flights per week, with a total flight time of approximately 17 hours, utilizing Boeing B777F freighters [1] - The inaugural flight, operated by China Eastern Logistics' China Cargo Airlines, departed from Shanghai Pudong International Airport at 2:30 AM and transited through Riyadh before arriving at Budapest International Airport [1] Group 2: Strategic Importance - The addition of Riyadh as a transit point extends the existing Shanghai-Budapest cargo route, creating a new trade corridor connecting China, the Middle East, and Europe [1] - Riyadh's strategic location at the intersection of Asia, Europe, and Africa allows China Eastern to enhance its logistics services in the Middle East and expand its network into key African markets [1] Group 3: Operational Advantages - The fifth-freedom rights permit China Eastern to conduct cargo operations such as loading and unloading in Riyadh, which is expected to improve operational efficiency, optimize costs, and increase revenue [1]

Core Points - Eastern Airlines Logistics has officially opened a new cargo route from Shanghai to Budapest, with a transit stop at Riyadh International Airport, marking the establishment of a new trade route connecting China, the Middle East, and Europe [1] Group 1 - The cargo flight CK251 from China Eastern Airlines Logistics took off from Shanghai Pudong Airport and is now operational on the Shanghai-Budapest cargo route [1] - This new route includes a fifth cargo route in the Middle East, enhancing the company's logistics network [1] - The opening of this route is part of a broader strategy to create new international trade channels [1]

Investment Rating - The report maintains a "Positive" investment rating for the transportation industry [12] Core Insights - The report identifies four key development focuses and investment opportunities for the transportation industry over the next five years, summarized as "Two Internals and Two Promotions": combating internal competition, driving domestic demand, promoting overseas expansion, and facilitating transformation [2][6][17] Summary by Sections Express Delivery - The ongoing effort to combat internal competition in the express delivery sector is expected to remain effective, positively impacting the entire e-commerce express delivery segment. Key recommendations include YTO Express, Shentong Express, Jitu Express, Zhongtong Express, and Yunda Express [2][6][17] Aviation - The implementation of paid staggered vacations is anticipated to improve the supply-demand dynamics in the aviation industry, aiding in reversing the current profitability downturn. Recommendations include A-share private airlines and the three major Hong Kong airlines [2][6][17] Overseas Expansion - The development of new growth poles through overseas expansion and the construction of the Western Land-Sea New Corridor is highlighted. This opens up profit margins for overseas enterprises, with continued recommendations for Jitu Express, Jiayou International, and Eastern Airlines Logistics [2][6][17] Green Transition - The report emphasizes the acceleration of green low-carbon transformation, marking the year as a significant one for green fuel investments. The focus is on promoting a green production and lifestyle, particularly in the transportation sector [2][6][17] Passenger Transport - Domestic passenger traffic has shown a 5% year-on-year increase, while international passenger traffic has risen by 20%. The domestic passenger load factor has improved by 2.2 percentage points year-on-year, and international load factors have increased by 5.6 percentage points [7][40] Maritime Transport - The average VLCC-TCE rate has surged by 44.1% to $114,000 per day, driven by increased demand from the Middle East. The SCFI index for foreign trade container shipping has risen by 10.5% to 1,551 points, indicating a favorable market environment [8][61][62] Logistics - The volume of express deliveries has increased by 9.9% year-on-year, with a stable demand for coal transportation. The report highlights the ongoing price adjustments in the express delivery sector, recommending investments in YTO Express, Shentong Express, Jitu Express, and Zhongtong Express [9][17]

Group 1: Metal Sector - Tianshan Aluminum's net profit forecast for 2025 is 47.71 billion CNY, with a PE ratio of 13.24[10] - Luoyang Molybdenum's net profit is projected to reach 194.40 billion CNY in 2025, with a PE ratio of 19.02[10] Group 2: Building Materials - Huaxin Cement's net profit for 2025 is estimated at 29.38 billion CNY, with a PE ratio of 13.83[10] - China National Materials' net profit is expected to grow to 19.36 billion CNY in 2025, with a PE ratio of 30.63[10] Group 3: Transportation - Eastern Airlines Logistics is projected to have a net profit of 26.46 billion CNY in 2025, with a PE ratio of 9.41[10] - COSCO Shipping Specialized Carriers' net profit is expected to be 19.77 billion CNY in 2025, with a PE ratio of 10.19[10] Group 4: Chemical Sector - Boryuan Chemical's net profit forecast for 2025 is 14.67 billion CNY, with a PE ratio of 17.19[10] - Yara International's net profit is projected to reach 21.09 billion CNY in 2025, with a PE ratio of 18.58[10] Group 5: Energy Sector - Guotou Power's net profit for 2025 is estimated at 69.48 billion CNY, with a PE ratio of 16.67[10] - Shouhua Gas is expected to turn around with a net profit of 0.42 billion CNY in 2025, after a loss in 2024[10]

Core Points - Eastern Airlines has launched its first fifth freedom cargo route in the Middle East, connecting Shanghai, Riyadh, and Budapest, starting from November 3 [1][4] - The new route will be operated by Boeing 777F freighters, with three flights planned each week, and a total flight time of approximately 17 hours [3][4] - The opening of this route aligns with the growing demand for air logistics driven by cooperation between China and Saudi Arabia in various sectors, including digital economy and green development [4] Route Details - The route operates in a round-trip manner: Shanghai - Riyadh - Budapest - Shanghai, with outbound flight CK251 and return flight CK252 [4] - Riyadh serves as a strategic hub located at the intersection of Asia, Europe, and Africa, enhancing Eastern Airlines' logistics services in the Middle East and extending its reach into key African markets [5] Strategic Partnerships - Eastern Airlines Logistics signed a strategic cooperation agreement with Saudi Airlines in June, focusing on resource integration through a "space swap" model [5] - In October, a ground operations service agreement was further established, deepening cargo service cooperation [5] - This partnership allows for efficient cargo organization and transit operations in Riyadh, optimizing costs and increasing revenue potential [5] Service Capabilities - The new route enables Eastern Airlines Logistics to provide logistics services to major air hubs in Europe and Africa, such as Liège in Belgium and Nairobi in Kenya [6] - Cargo can reach Nairobi in as fast as 24 hours and Liège in 40 hours via the new route [6] Future Plans - Eastern Airlines Logistics aims to enhance its global market presence by increasing connections with Europe, Asia-Pacific, and the Middle East, while optimizing transit efficiency and developing a comprehensive multimodal transport system [7] - The company has established stable operations at 16 international stations globally, reflecting its commitment to serving national strategies and expanding into emerging markets [7]

Core Viewpoint - Eastern Airlines Logistics reported a decline in revenue and net profit for Q3 2025, primarily due to the impact of tariff changes on its comprehensive logistics solutions [1][2]. Financial Performance - For the first three quarters of 2025, the company achieved operating revenue of 17.25 billion yuan, a year-on-year decrease of 2.4%, and a net profit attributable to shareholders of 2 billion yuan, down 3.2% [1]. - In Q3 2025, the company recorded operating revenue of 5.99 billion yuan, a decline of 6.2% year-on-year, and a net profit of 710 million yuan, down 9.8% [1]. - The gross profit margin for Q3 was 22%, an increase of 2 percentage points year-on-year, driven by ground comprehensive services [2]. Business Segment Analysis - **Air Express**: Revenue reached 2.8 billion yuan, up 23% year-on-year, despite a 5.5% decline in the Q3 TAC freight rate index [2]. - **Ground Comprehensive Services**: Revenue was 700 million yuan, a 9% increase year-on-year [2]. - **Comprehensive Logistics Solutions**: Revenue fell to 2.5 billion yuan, a decrease of 28% year-on-year, mainly due to the U.S. cancellation of the small package tax exemption policy [2]. Cost and Profitability - The company's expense ratio increased to 3.8%, up 1.6 percentage points year-on-year, primarily due to rising management and financial expense ratios [2]. - Other income decreased by 93% year-on-year, contributing to a slight decline in net profit margin to 11.9%, down 0.5 percentage points [2]. Strategic Initiatives - The company is actively opening new flight routes and enhancing strategic partnerships to adapt to changing tariff policies [3]. - New international cargo transport routes were successfully launched, including "Hangzhou-Taiyuan-Kuala Lumpur" and "Xi'an-Kunming-Kuala Lumpur" [3]. - A strategic cooperation agreement was signed with SF Airlines to leverage both companies' resources and capabilities for improved logistics services [3]. Profit Forecast and Valuation - The company maintains its net profit forecasts for 2025-2027 at 2.6 billion, 3 billion, and 3.3 billion yuan, respectively, and continues to hold a "buy" rating [4].

Core Points - The logistics sector experienced a slight decline of 0.04% on October 31, with Pulutong leading the drop [1] - The Shanghai Composite Index closed at 3954.79, down 0.81%, while the Shenzhen Component Index closed at 13378.21, down 1.14% [1] Summary of Individual Stocks - Hengji Daxin (002492) saw a significant increase of 5.99%, closing at 8.50 with a trading volume of 175,600 shares and a transaction value of 146 million [1] - ST Xuefa (002485) rose by 4.90%, closing at 4.07 with a trading volume of 61,600 shares and a transaction value of 24.57 million [1] - Milkway (603713) increased by 3.26%, closing at 59.47 with a trading volume of less than 35,100 shares and a transaction value of 209 million [1] - Pulutong (002769) led the decline with a drop of 3.49%, closing at 69.6 with a trading volume of 342,600 shares and a transaction value of 334 million [2] - SF Holding (002352) decreased by 1.47%, closing at 40.33 with a trading volume of 564,800 shares and a transaction value of 2.262 billion [2] Capital Flow Analysis - The logistics sector experienced a net outflow of 326 million from institutional investors, while retail investors saw a net inflow of 340 million [2] - Major stocks like Wuchan Zhongda (600704) and Jianfa Co. (600153) had mixed capital flows, with Wuchan Zhongda seeing a net inflow of 19.38 million from institutional investors [3] - ST Xuefa (002485) had a notable net inflow of 391.24 million from retail investors, indicating strong interest despite the overall sector decline [3]

Core Viewpoint - The company, Eastern Airlines Logistics Co., Ltd., has announced its third-quarter report for 2025, detailing its financial performance and significant transactions, including the early repurchase of two leased aircraft to optimize financial structure and reduce costs [21][30]. Financial Data - The third-quarter financial report is unaudited, and the company emphasizes the accuracy and completeness of the financial information provided [3][7]. - The company has introduced two new aircraft, bringing the total to 18 cargo planes by the end of the reporting period [6]. Major Transactions - The company’s subsidiary, China Cargo Airlines, plans to repurchase two leased aircraft for a total amount not exceeding RMB 1.1 billion, with specific amounts allocated to each leasing company: up to RMB 240 million to Jiaoyin Jinpeng and up to RMB 860 million to Donghang Hu63 [21][23]. - The repurchase is aimed at reducing interest expenses and improving capital efficiency, and it does not incur any early repayment fees [24][30]. Board Decisions - The board meeting held on October 30, 2025, approved the third-quarter report and the early repurchase of the aircraft, with unanimous support from the attending directors [9][25]. - The board also approved the acquisition of a 49% stake in Shanghai Eastern Airlines Supply Chain Management Co., Ltd., which will result in the company owning 100% of the stake post-transaction [15][30]. Related Party Transactions - The repurchase of the aircraft involves related party transactions, as Donghang Hu63 is a related entity, and certain directors recused themselves from the voting process [22][26].

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company reported a slight decline in third-quarter performance but remains optimistic about long-term growth [7] - The third-quarter revenue was 5.993 billion yuan, down 6.19% year-on-year, while the net profit attributable to shareholders was 712 million yuan, down 9.81% year-on-year [7] - The company aims to distribute 30%-50% of its net profit as cash dividends annually, indicating a commitment to stable returns for investors [7] Financial Data and Earnings Forecast - Total revenue for 2025 is estimated at 25.049 billion yuan, with a year-on-year growth rate of 4.1% [6] - The net profit attributable to shareholders for 2025 is projected to be 2.629 billion yuan, reflecting a year-on-year decline of 2.2% [6] - The company expects to achieve a net profit of 3.028 billion yuan in 2026 and 3.477 billion yuan in 2027, with corresponding PE ratios of 8x and 7x [7] - The company’s gross margin is expected to improve from 19.0% in 2025 to 20.9% in 2027 [6] Business Segment Performance - The air express segment generated revenue of 7.488 billion yuan in the first three quarters, up 13.35% year-on-year, with a gross profit margin of 19.29% [7] - Ground comprehensive services revenue reached 1.988 billion yuan, up 6.70% year-on-year, with a gross profit margin of 37.54% [7] - The comprehensive logistics solutions segment saw a revenue decline of 15.69% year-on-year, totaling 7.755 billion yuan [7]

Core Viewpoint - Eastern Airlines Logistics announced the results of its board meeting held on October 30, 2025, which included discussions on the 2024 annual salary total settlement plan [1] Company Summary - Eastern Airlines Logistics reported that for the year 2024, its revenue composition will be 99.94% from the logistics industry and 0.06% from other businesses [1]