Investment Rating - The report recommends a "Buy" rating for the aviation sector, highlighting potential long-term benefits from the civil aviation authority's "anti-involution" policy and the expected recovery in airline revenues [90][91]. Core Insights - The global aviation market is experiencing a normalization phase with a year-on-year increase in passenger turnover (RPK) of 5.1% in H1 2025, driven by a higher growth rate in international RPK at 7.0% compared to domestic RPK at 2.0% [3][5]. - The U.S. aviation industry shows signs of stabilization with a profit margin of 3.6% in H1 2025, an increase of 0.9 percentage points year-on-year, despite a 1% increase in revenue and a 1% rise in costs [30][32]. - The European aviation market faces uncertainties but shows potential for profit growth, with ticket prices fluctuating significantly due to seasonal factors [66][72]. - In Asia, key markets like Southeast Asia and Japan are witnessing a recovery in passenger volumes, with some airports exceeding pre-pandemic levels [78][81]. Summary by Sections Global Aviation Market Overview - The global aviation market's growth rate has slowed, with H1 2025 showing a 5.1% increase in RPK and a 4.8% increase in available seat kilometers (ASK) [3][5]. - The market's load factor improved to 82.5%, reflecting a 0.2 percentage point increase year-on-year [3]. U.S. Aviation Market Tracking - The U.S. aviation sector's profit margin reached 3.6% in H1 2025, with a 1% increase in revenue and a 1% rise in costs, including a 13% decrease in fuel costs [30][32]. - Ticket prices in the U.S. have seen a decline, with a 5.1% drop in inflation-adjusted prices from January to July 2025 [34][38]. European Aviation Market Tracking - The European aviation market's ticket prices showed volatility, with significant fluctuations in early 2025, but overall recovery in passenger volumes is noted [66][63]. - Major airlines like Lufthansa and IAG reported profit growth in Q2 2025, driven by increased ticket prices and demand recovery [66][72]. Asian Aviation Market Tracking - Southeast Asia and Japan's airports are experiencing a resurgence in passenger traffic, with notable increases in throughput compared to pre-pandemic levels [78][81]. - Key transit airports in the region, such as Singapore and Doha, also reported growth in passenger numbers [81]. Investment Analysis Opinion - The report suggests that the seasonal increase in passenger volume coupled with a decrease in ticket prices has been adequately reflected in market expectations, indicating a favorable outlook for airline profitability [90]. - The report recommends focusing on airlines such as China Southern Airlines, China Eastern Airlines, and Spring Airlines, as well as global aircraft leasing companies and airport operators [90][91].

上海监管局依据CCAR121-R8中修订的性能相关条款及咨询通告要求，采取"制度审查＋程序验证＋实 战演练"的多维检查方式，重点针对高原机场、污染跑道、单发失效、释压飘降等复杂运行场景下的性 能评估，系统检验其分析的有效性、计算的准确性和结果的可靠性。为了严守跑道安全的底线，必须精 确计算跑道限制和越障能力；为了保障航路运行的安全，必须动态管理性能裕度和特情处置能力。监察 员分别从起飞着陆性能和航路运行性能两大模块入手，深入检查公司在程序标准制定、数据维护与校 验、人员资质与训练、流程合规性以及单发失效、障碍物评估等方面的实际表现，对"数据采集－计算 －应用"全流程的精确性和稳定性进行了全面验证，确保性能安全要求嵌入运行全链条。 上海监管局的航务监察员强调，飞机性能管理是支撑飞行安全的关键技术体系，其分析的精确性与输出 的可靠性直接关系到起降安全裕度和航路运行能力。针对监察中发现的薄弱短板，监察员要求公司性能 管理部门高度重视，以此次监察为契机，持续完善性能管理机制，推进数字化性能工具建设与深度融 合，增强风险的早期感知和预警能力。同时，必须始终将人才培养作为核心目标，着力培育既懂法规、 又通运行、精通性能分 ...

Market Overview - On August 27, the aviation and airport sector declined by 1.27% compared to the previous trading day, with CITIC Hainan leading the drop [1] - The Shanghai Composite Index closed at 3800.35, down 1.76%, while the Shenzhen Component Index closed at 12295.07, down 1.43% [1] Individual Stock Performance - Spring Airlines closed at 54.00, up 0.52% with a trading volume of 113,200 shares and a transaction value of 616 million yuan [1] - China Southern Airlines closed at 6.01, down 0.99% with a trading volume of 852,200 shares and a transaction value of 516 million yuan [1] - Shanghai Airport closed at 32.52, down 1.90% with a trading volume of 191,200 shares and a transaction value of 629 million yuan [1][2] Capital Flow Analysis - The aviation and airport sector experienced a net outflow of 369 million yuan from institutional investors, while retail investors saw a net inflow of 217 million yuan [2][3] - Major stocks like Shenzhen Airport and China Eastern Airlines had significant net outflows from institutional investors, indicating a shift in investment sentiment [3] Detailed Stock Capital Flow - Shenzhen Airport had a net inflow of 33.24 million yuan from retail investors but a net outflow of 19.39 million yuan from institutional investors [3] - China Eastern Airlines saw a net outflow of 54.94 million yuan from institutional investors, while retail investors contributed a net inflow of 41.58 million yuan [3] - The overall trend indicates a preference for retail investment in certain stocks despite the overall sector decline [3]

Growth - Shudao Equipment reported a net profit of 10.15 million yuan in the first half of the year, a year-on-year increase of 5972.30% [1] - Aerospace Science and Technology achieved a net profit of 88.97 million yuan, up 2161.91% year-on-year [1] - Tianbao Infrastructure's net profit reached 118 million yuan, growing by 2106.58% year-on-year [1] - Northern Rare Earth reported a net profit of 931 million yuan, an increase of 1951.52% year-on-year [1] - Liugang Co., Ltd. posted a net profit of 36.8 million yuan, up 579.54% year-on-year [1] - Cheng Tian Wei Ye's net profit was 10.88 million yuan, increasing by 562.05% year-on-year [1] - Perfect World reported a net profit of 503 million yuan, a year-on-year increase of 384.52% [1] - Shenghong Technology achieved a net profit of 2.143 billion yuan, up 366.89% year-on-year [1] - Zhongke Magnetic Industry's net profit was 20.90 million yuan, increasing by 271.78% year-on-year [1] - Xinjiang Communications Construction reported a net profit of 255 million yuan, up 255.25% year-on-year [1] - Shennong Group achieved a net profit of 388 million yuan, a year-on-year increase of 212.65% [1] - Daikin Heavy Industries reported a net profit of 547 million yuan, up 214.32% year-on-year [1] - Fostar's net profit was 251 million yuan, increasing by 140.45% year-on-year [1] - Guohua Airlines achieved a net profit of 1.24 billion yuan, up 86.15% year-on-year [1] - China Electric Port reported a net profit of 181 million yuan, increasing by 64.98% year-on-year [1] - Ailisi's net profit was 1.051 billion yuan, up 60.22% year-on-year [1] - Zijin Mining reported a net profit of 23.292 billion yuan, a year-on-year increase of 54.41% [1] - Zhongke Chuangda achieved a net profit of 158 million yuan, up 51.84% year-on-year [1] - Sichuan Gold reported a net profit of 209 million yuan, increasing by 48.41% year-on-year [1] - Dongxing Securities achieved a net profit of 819 million yuan, up 42.12% year-on-year [1] - Fosun Pharma reported a net profit of 1.702 billion yuan, a year-on-year increase of 38.96% [1] - Kotec Power's net profit was 23.99 million yuan, increasing by 35.52% year-on-year [1] - Dongshan Precision reported a net profit of 758 million yuan, up 35.21% year-on-year [1] - Inspur Information achieved a net profit of 799 million yuan, a year-on-year increase of 34.87% [1] - Shenzhen Huaqiang reported a net profit of 236 million yuan, increasing by 33.45% year-on-year [1] - Conch Cement achieved a net profit of 4.368 billion yuan, up 31.34% year-on-year [1] - Jiuzhoutong reported a net profit of 1.446 billion yuan, increasing by 19.7% year-on-year [1] - Aofei Data achieved a net profit of 87.89 million yuan, a year-on-year increase of 16.09% [2] Decline and Loss - Huachang Chemical reported a net profit of 1.09 million yuan, a year-on-year decrease of 97.58% [2] - Meibang Apparel achieved a net profit of 993,030 yuan, down 87.07% year-on-year [2] - Toukeng Life reported a net profit of 275,930 yuan, a decrease of 58.41% year-on-year [2] - BlueFocus reported a net profit of 96.44 million yuan, down 47.33% year-on-year [2] - China Gold achieved a net profit of 31.9 million yuan, a decrease of 46.35% year-on-year [2] - Huaxi Biological reported a net profit of 22.1 million yuan, down 35.38% year-on-year [2] - Zhejiang New Energy achieved a net profit of 29.2 million yuan, down 34.65% year-on-year [2] - Hainan Mining reported a net profit of 28.1 million yuan, a decrease of 30.36% year-on-year [2] - Changying Precision achieved a net profit of 30.6 million yuan, down 29.37% year-on-year [2] - China Duty Free reported a net profit of 2.6 billion yuan, down 20.81% year-on-year [2] - Jiangling Motors achieved a net profit of 73.3 million yuan, down 18.17% year-on-year [2] - Donghua Software reported a net profit of 24.4 million yuan, down 15.78% year-on-year [2] - Hengda New Materials achieved a net profit of 3.4235 million yuan, down 12.68% year-on-year [2] - Yaoji Technology reported a net profit of 25.6 million yuan, down 9.98% year-on-year [2] - Ping An Insurance achieved a net profit of 68.047 billion yuan, down 8.8% year-on-year [2] - China Petroleum reported a net profit of 840.07 billion yuan, down 5.4% year-on-year [2] - 360 reported a net loss of 28.2 million yuan [2] - Electric Wind Power reported a net loss of 27.9 million yuan [2] Losses - Suzhou Keda reported a net loss of 21.7 million yuan [3] - Yuntian Lifa achieved a net loss of 20.6 million yuan [3] - Kosen Technology reported a net loss of 10.5 million yuan [3] - Xinyada reported a net loss of 5.2635 million yuan [3] - Chengfei Integration achieved a net loss of 1.49208 million yuan [3] - China Film reported a net loss of 11 million yuan, turning from profit to loss year-on-year [3]

Core Viewpoint - The aviation and airport sector experienced a slight increase of 0.78% on August 26, with CITIC Heli leading the gains, while the overall market showed mixed results with the Shanghai Composite Index down by 0.39% and the Shenzhen Component Index up by 0.26% [1] Group 1: Market Performance - The Shanghai Composite Index closed at 3868.38, down 0.39% [1] - The Shenzhen Component Index closed at 12473.17, up 0.26% [1] - CITIC Heli's stock price increased by 3.65% to 25.27, with a trading volume of 733,100 shares and a transaction value of 1.835 billion yuan [1] Group 2: Individual Stock Performance - Major stocks in the aviation sector showed varied performance, with Hainan Airlines up by 1.26% to 1.61 and Southern Airlines up by 1.17% to 6.07 [1] - Shanghai Airport's stock price rose by 1.10% to 33.15, with a trading volume of 210,400 shares and a transaction value of 695 million yuan [1] - Xiamen Airport's stock price increased by 0.13% to 15.14, with a trading volume of 26,000 shares and a transaction value of 39.3871 million yuan [2] Group 3: Fund Flow Analysis - The aviation and airport sector saw a net outflow of 15.1482 million yuan from institutional funds, while retail funds experienced a net inflow of 19.8807 million yuan [2] - The main stocks with significant net inflows included Shanghai Airport with 62.3442 million yuan and CITIC Heli with 62.0524 million yuan [3] - Conversely, China Eastern Airlines experienced a net outflow of 17.5615 million yuan from institutional funds [3]

Group 1 - The core viewpoint of the report is that Minsheng Securities recommends Jixiang Airlines (603885.SH) based on several positive factors affecting its performance [1] - The anticipated decrease in oil prices by Q2 2025 is expected to offset the non-oil cost increases due to aircraft grounding, while focusing capacity on high-yield routes will enhance passenger revenue [1] - The scale operation of international long-haul routes is showing significant improvement in passenger load factors, which is expected to contribute to the company's long-term profitability [1] - The stable profit performance of Jiuyuan Airlines in the first half of 2025 is noted, with expectations for aircraft deliveries to resume growth [1] - Continuous improvement in financial expenses is highlighted, with attention on the progress of the repair of the Puhui engines [1]

Investment Rating - The report maintains a "Recommended" rating for the company [6][8]. Core Views - The company reported a revenue of 11.1 billion yuan for H1 2025, a year-on-year increase of 1.0%, and a net profit attributable to shareholders of 510 million yuan, up 3.3% year-on-year [3]. - The second quarter of 2025 saw a revenue of 5.34 billion yuan, a 2.1% increase year-on-year, with a net profit of 160 million yuan, reflecting a significant 36% year-on-year growth [3]. - The company is benefiting from a strategic focus on high-yield routes, with a notable improvement in international long-haul operations, which is expected to enhance long-term profitability [5]. Summary by Sections Financial Performance - In H1 2025, the company's overall passenger revenue decreased by 2.9% year-on-year, while the domestic ticket prices saw a reduction of 3.9% [4]. - The company’s overall fleet utilization rate showed a discrepancy of 18%, primarily due to the maintenance of the A320 engines, which affected operational efficiency [4]. - The financial expenses have been improving, and the company is actively working on reducing its debt levels [6]. Operational Insights - The international long-haul routes have shown significant improvement, with a passenger load factor of 81.0% in Q2 2025, up 4.9 percentage points from the previous quarter [5]. - The company has introduced several new international routes, which are expected to contribute positively to its operational performance [5]. Future Projections - The report forecasts the company's net profit attributable to shareholders to be 1.67 billion yuan in 2025, with expected growth rates of 82.7% and 37.0% for 2026 and 2027, respectively [7][12]. - The projected earnings per share for 2025 is 0.76 yuan, with a price-to-earnings ratio of 17 [7][12].

Core Viewpoint - 吉祥航空 has initiated a collaboration with the Sign Language Planet charity project to launch the "Convenient Travel Practice Plan for Caring Individuals," focusing on enhancing travel accessibility for disabled individuals, particularly the hearing impaired [1][2]. Group 1: Company Initiatives - 吉祥航空 has established a comprehensive pet transportation guarantee system, having executed 14 pet charter flights and safely served over 800 families and more than 600 pets [1]. - The airline has provided care services for over 24,000 special groups, including unaccompanied children and disabled travelers, emphasizing its commitment to humanitarian care [7]. - The recent collaboration aims to further address the communication and companionship needs of disabled travelers, enhancing their travel experience [2][4]. Group 2: Social Responsibility - The partnership with Sign Language Planet is part of 吉祥航空's broader strategy to integrate corporate social responsibility with its core service capabilities, contributing to the improvement of social security systems for disabled individuals [6]. - The airline plans to deepen its collaboration with Sign Language Planet, optimizing services and support processes for disabled travelers, and advocating for more social participation in these initiatives [7].

Financial Performance - In H1 2025, the company achieved operating revenue of 11.067 billion yuan, a year-on-year increase of 1.02%, and 137.29% of the 2019 figure [1] - The net profit attributable to shareholders was 505 million yuan, up 3.29% year-on-year, and 87.35% of the 2019 figure [1] - The company reported a net profit after deducting non-recurring items of 408 million yuan [1] Passenger and Cargo Transport - Passenger transport volume in H1 2025 reached 11.3379 million for domestic, 2.1011 million for international, and 151,400 for regional, representing 119.85%, 180.63%, and 72.79% of the 2019 figures respectively [1] - The ASK/RPK ratio for domestic, international, and regional routes was 119.55%/122.54%, 282.23%/267.65%, and 73.91%/75.40% compared to 2019 [1] - The passenger load factor was 88.05% for domestic, 78.44% for international, and 85.16% for regional [1] Revenue Breakdown - The company's operating revenue of 11.067 billion yuan included 10.512 billion yuan from passenger transport, a year-on-year increase of 0.81%, accounting for 94.99% of total revenue [1] - Cargo revenue was 415 million yuan, up 70.65%, making up 3.75% of total revenue [1] - Domestic revenue was 7.491 billion yuan, down 13.53%, while international revenue was 3.451 billion yuan, up 59.96% [1] Cost and Expenses - Operating costs were 9.757 billion yuan, a year-on-year increase of 5.65%, and 141.42% of the 2019 figure [1] - Fuel costs were 3.273 billion yuan, down 7.41% [1] - The gross profit margin was 11.84%, a decrease of 3.86 percentage points from 2024 [1] Efficiency and Fleet Management - As of H1 2025, the company operated a fleet of 130 aircraft, with an average age of 7.61 years [2] - The utilization rate of registered aircraft was 9.84 hours, a decrease of 0.63 hours year-on-year [2] - The company adopted a main operating base model to enhance efficiency and cost control, focusing on the Yangtze River Delta and Pearl River Delta regions [2] Shareholder Returns - In June 2025, the company distributed cash dividends of 216 million yuan to shareholders [2] - The company repurchased 26,565,986 shares, accounting for 1.22% of total shares, with a total expenditure of 338 million yuan [2] Investment Outlook - The company is projected to achieve EPS of 0.68, 0.84, and 1.03 yuan for 2025, 2026, and 2027, respectively, with corresponding PE ratios of 18.66X, 15.11X, and 12.32X [3]

Industry Overview - The civil aviation industry in China has shown steady growth in 2023, with total transport turnover reaching 783.5 billion ton-kilometers, passenger transport volume at 370 million, and cargo mail transport volume at 4.784 million tons, representing year-on-year increases of 11.4%, 6%, and 14.6% respectively, setting new records [1] - The recovery in the passenger market is attributed to strong demand for domestic tourism, increased willingness of residents to travel, and favorable policies for inbound tourism [1] Company Performance - Shenzhen Airport Co., Ltd. reported revenue of 2.528 billion yuan, a year-on-year increase of 12.32%, and net profit of 312 million yuan, up 79.13% [2] - Xiamen International Airport Co., Ltd. achieved revenue of 991 million yuan, a 7.1% increase, and net profit of 253 million yuan, up 1.1% [2] - Guangzhou Baiyun International Airport Co., Ltd. recorded revenue of 3.726 billion yuan, a 7.68% increase, and net profit of 750 million yuan, up 71.32% [3] - Shanghai Juneyao Airlines Co., Ltd. reported revenue of 11.067 billion yuan, a 1.02% increase, and net profit of 505 million yuan, up 3.29% [3] International Business Recovery - The international passenger market is recovering, with a 30.2% year-on-year increase in foreign citizens entering and exiting China, totaling 38.053 million people in the first half of 2025 [3] - The number of international passenger transport routes increased by 123, with a year-on-year growth of 28.5% in international passenger transport volume [4] - The demand for international cargo transport is also rising, with a year-on-year increase of 23.4% [4] Market Trends - The aviation market is experiencing a "dual boom" in both passenger and cargo sectors, with July 2023 seeing a record transport turnover of 14.8 billion ton-kilometers, a year-on-year increase of 8.6% [5] - The passenger transport volume in July reached 64.73 million, a 2.7% increase year-on-year, while international passenger transport volume reached 7.09 million, up 15.7% [6] - The industry is expected to maintain steady growth in the second half of the year, supported by holiday travel demand and the recovery of the tourism market, particularly in lower-tier cities [6]