Investment Rating - The report maintains a "Recommendation" rating for China National Aviation (601111) [1] Core Views - The company reported a net loss attributable to shareholders of 1.77 billion yuan for 2025, with short-term oil prices under pressure, but the medium-term outlook remains optimistic due to supply-demand elasticity [1][9] - The revenue for 2025 was 171.48 billion yuan, a year-on-year increase of 2.9%, while the operating profit showed a reduction in losses by 1.38 billion yuan compared to the previous year [1] - The report highlights that despite the challenges, the operational improvements and high passenger load factors are expected to drive price elasticity in the medium term [9] Financial Data Summary - **2025 Financial Performance**: - Revenue: 171.48 billion yuan, up 2.9% year-on-year - Net profit attributable to shareholders: -1.77 billion yuan, compared to -240 million yuan in 2024 - Operating profit: -2.05 billion yuan, a reduction in losses by 1.38 billion yuan year-on-year - Other income: 4.52 billion yuan, up 5.2% year-on-year [1][5] - **Q4 2025 Performance**: - Revenue: 41.66 billion yuan, up 8.1% year-on-year - Net profit attributable to shareholders: -3.64 billion yuan, compared to -1.6 billion yuan in Q4 2024 - Operating profit: -3.27 billion yuan, a reduction in losses by 990 million yuan year-on-year [1][2] Operational Data Summary - **2025 Operational Metrics**: - Available Seat Kilometers (ASK): up 3.2% year-on-year - Revenue Passenger Kilometers (RPK): up 5.9% year-on-year - Passenger load factor: 81.9%, an increase of 2.0 percentage points year-on-year [2] - **Q4 2025 Operational Metrics**: - ASK: up 4.4% year-on-year - RPK: up 9.6% year-on-year - Passenger load factor: 83.6%, an increase of 3.9 percentage points year-on-year [2] Cost and Expense Summary - **2025 Cost Structure**: - Operating costs: 162.65 billion yuan, up 2.8% year-on-year - Domestic oil price composite cost: down 9.4% year-on-year - Jet fuel cost: 50 billion yuan, down 6.8% year-on-year - Non-fuel costs: 112.6 billion yuan, up 7.8% year-on-year [3] - **Q4 2025 Cost Structure**: - Operating costs: 41.99 billion yuan, up 9.2% year-on-year - Domestic oil price composite cost: up 1.4% year-on-year - Jet fuel cost: 12.4 billion yuan, up 3.3% year-on-year [3] Fleet Expansion Plans - The company plans to increase its fleet with a net addition of 20, 49, and 59 aircraft in 2026, 2027, and 2028, respectively, corresponding to growth rates of 2.1%, 5.0%, and 5.7% [4]

格隆汇3月31日｜东兴证券研报指出，所得税增长拖累中国国航业绩，近期油价上涨形成短期冲击。25 年公司实现营收1714.8亿元，同比增长2.87%，实现归母净利润-17.70亿元，较24年同期的-2.37亿元亏损 扩大，主要系四季度转回部分递延所得税资产，导致所得税费用大幅提升。公司Q4归母净利润-36.4 亿，较24年同期的-16.0亿相比，亏损明显扩大，拖累了全年业绩。油价上涨对公司及行业形成短期冲 击，但股价或已反映悲观预期。公司26年计划引进飞机40架，退出20架，净增仅20架，相比25年，公司 26年飞机引进更加谨慎，预计供给端继续维持低增长。认为市场目前对航空业的悲观预期较为充分，建 议静待油价企稳。维持公司"推荐"评级。 ...

Investment Rating - The report maintains a "Recommended" rating for China National Airlines [4] Core Views - The company's revenue for 2025 reached 171.48 billion yuan, a year-on-year increase of 2.87%, but the net profit attributable to shareholders was -1.77 billion yuan, a significant increase in losses compared to -0.24 billion yuan in 2024 [1] - The fourth quarter saw a substantial loss primarily due to the reversal of deferred tax assets, leading to a significant increase in tax expenses [1] - The company experienced a 2 percentage point increase in passenger load factor to 81.88%, contributing to a rise in passenger revenue to 154.86 billion yuan, despite a decline in revenue per passenger kilometer [2] - The company plans to introduce 40 new aircraft in 2026, a decrease from 45 in 2025, indicating a cautious approach to fleet expansion [3] - Recent oil price increases have created short-term pressure on the company's performance, but the stock price has already reflected pessimistic expectations [3] Financial Summary - The company forecasts net profits for 2026, 2027, and 2028 to be -1.05 billion yuan, 2.40 billion yuan, and 4.45 billion yuan respectively, with corresponding EPS of -0.06, 0.14, and 0.26 yuan [4] - The operating revenue is projected to grow from 171.48 billion yuan in 2025 to 198.84 billion yuan in 2028, with growth rates of 6.72%, 4.10%, and 4.37% for the following years [8] - The net profit margin is expected to improve significantly by 2028, reaching 2.93% [10]

Investment Rating - The report maintains a "Recommended" rating for China National Airlines [4] Core Views - The company reported a revenue of 171.48 billion yuan in 2025, a year-on-year increase of 2.87%, but experienced a net loss attributable to shareholders of 1.77 billion yuan, which is a significant increase from the loss of 237 million yuan in 2024 [1] - The fourth quarter saw a substantial loss primarily due to the reversal of deferred tax assets, leading to a significant increase in tax expenses [1] - The passenger load factor improved by approximately 2 percentage points to 81.88%, contributing to an increase in passenger revenue despite a decline in revenue per passenger kilometer [2] - The company plans to introduce 40 new aircraft in 2026, a decrease from 45 in 2025, indicating a cautious approach to fleet expansion [3] - Recent increases in oil prices due to geopolitical tensions have created short-term challenges for the airline industry, although the stock price may have already reflected these pessimistic expectations [3] Financial Summary - The company’s operating profit improved from a loss of 3.43 billion yuan in 2024 to a loss of 2.05 billion yuan in 2025, indicating some operational recovery despite the tax impact [2] - Forecasted net profits for 2026, 2027, and 2028 are -1.05 billion yuan, 2.40 billion yuan, and 4.45 billion yuan respectively, with corresponding EPS of -0.06, 0.14, and 0.26 yuan [4][8] - The company’s total market capitalization is approximately 120.22 billion yuan, with a circulating market value of about 80.19 billion yuan [5]

Core Viewpoint - China International Airlines has officially resumed direct passenger flights from Beijing to Pyongyang after a six-year hiatus, marking a significant step in enhancing bilateral relations between China and North Korea [2]. Group 1: Flight Resumption - The CA121 flight from Beijing Capital International Airport arrived at Pyongyang Sunan International Airport on March 30, 2026 [2]. - The resumption of this route is expected to facilitate increased friendly exchanges, people-to-people connections, and economic cooperation between the two countries [2]. Group 2: Operational Details - Starting from March 30, 2026, the direct flight will operate once a week on Mondays [2]. - Currently, all modes of transportation, including road, rail, and air, have been fully restored between China and North Korea [2].

Investment Rating - The report maintains an "Accumulate" rating for China National Aviation Holdings (601111.SH) [2][7] Core Views - The company experienced a significant reduction in operating losses for the year, with a notable decline in costs and tax impacting Q4 performance [6][7] - Despite a slight decrease in net profit attributable to shareholders, the company reported a revenue increase of 2.9% year-on-year for 2025, reaching 171.5 billion yuan [6][7] - The report highlights that high oil prices are expected to pressure short-term profitability, but the company's hub and route advantages are likely to support future profit recovery [6][7] Financial Performance Summary - In 2025, the company reported an operating loss of 2.05 billion yuan, a reduction of 1.38 billion yuan year-on-year, while the net loss attributable to shareholders expanded to 1.77 billion yuan, an increase of 1.53 billion yuan year-on-year [6][7] - Q4 2025 saw a revenue of 41.7 billion yuan, up 8.1% year-on-year, but the net loss attributable to shareholders was 3.64 billion yuan, an increase of 2.04 billion yuan year-on-year [6][7] - The company’s capacity (ASK/RPK) grew by 3.2%/5.9% year-on-year, with an overall passenger load factor increase of 2.0 percentage points to 81.9% for 2025 [6][7] - Fuel costs decreased, benefiting the cost side, with the average price of aviation kerosene in 2025 at 5,714 yuan per ton, down 9.4% year-on-year [6][7] - The company’s investment income increased to 3.49 billion yuan, up 590 million yuan year-on-year, primarily due to improved returns from Cathay Pacific [6][7] Future Outlook - The report projects a decline in net profit for 2026-2028, estimating losses of 2.9 billion yuan in 2026, followed by profits of 3.9 billion yuan in 2027 and 6.2 billion yuan in 2028 [6][7] - The company is expected to stabilize its revenue levels in Q1 2026, with a focus on recovering profitability despite the challenges posed by rising oil prices [6][7]

Core Viewpoint - China National Aviation (601111.SH) is expected to release its Q1 2026 financial report on April 30, 2026, with projected revenue of 43.625 billion yuan, a year-on-year increase of 9.0%, and a net profit forecast of 370 to 693 million yuan, representing a year-on-year growth of 118.0% to 133.9% [1][6][7] Group 1: Financial Performance Expectations - The Q1 2026 revenue forecast is 43.625 billion yuan, reflecting a 9.0% year-on-year increase [6] - The net profit is expected to be between 370 million and 693 million yuan, indicating a significant year-on-year growth of 118.0% to 133.9% [6][7] Group 2: Recent Sell-Side Perspectives - According to Shenwan Hongyuan Securities, the 2025 annual report indicates a revenue of 171.5 billion yuan, a 3% year-on-year increase, but a net loss of 1.77 billion yuan, which is an increase in loss by 1.5 billion yuan year-on-year [2][8] - The company has increased its capacity investment, ending the year with a fleet of 964 aircraft, and international line ASK (Available Seat Kilometers) grew by 12% [2][8] - The passenger load factor improved to 82%, up 2% year-on-year, while the cost per seat kilometer decreased by 0.4% [3][10] - Investment income rose by 20% year-on-year, primarily due to significant profits from the associated company Cathay Pacific [11][12] Group 3: Cost Management and Market Position - The unit fuel cost decreased by 10% year-on-year, contributing to cost control efforts [11] - Despite rising fuel costs due to geopolitical tensions, the long-term supply tightness in the industry remains unchanged, and demand for air travel is robust [2][8] - The company holds a 66% market share at Beijing Capital Airport, which may enhance its competitive position in international routes [12]

中國國際航空股份有限公司董事會（「董事會」）成員載列如下。 執行董事 職工董事 肖鵬 獨立非執行董事 劉鐵祥 （主席） 曲光吉 00753 非執行董事 崔曉峰 Patrick Healy（賀以禮） 董事名單與其角色和職能 徐念沙 禾雲 譚允芝 高春雷 董事會設立五個委員會。下表提供各董事會成員在這些委員會中所擔任的職位。曲光吉 先生已獲委任為董事會航空安全委員會委員及主任。 | | 董事會委員會 | 戰略和投資 | 審計和風險管理委員 | 提名 | 薪酬與考核 | 航空安全 | | --- | --- | --- | --- | --- | --- | --- | | 董事 | | 委員會 | 會（監督委員會） | 委員會 | 委員會 | 委員會 | | 劉鐵祥 | | C | | C | | M | | 曲光吉 | | | | | | C | | 徐念沙* | | M | M | | C | M | | 禾雲* | | M | M | M | M | | | 譚允芝* | | | M | M | | | | 高春雷* | | | C | M | M | | 附註： * 獨立非執行董事 C 有關委員會的主任委 ...

Group 1 - Air China Limited (AIRYY) has been added to the Zacks Rank 5 (Strong Sell) List due to a 100% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Alamo Group Inc. (ALG) is also on the Zacks Rank 5 (Strong Sell) List, with a 7.9% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Coterra Energy Inc. (CTRA) has seen a 4.6% downward revision in the Zacks Consensus Estimate for its current year earnings over the last 60 days, placing it on the Zacks Rank 5 (Strong Sell) List [2]

Core Viewpoint - The resumption of direct passenger flights between Air China and Pyongyang is seen as a positive development for enhancing friendly exchanges between the two countries [1] Group 1 - The Chinese Foreign Ministry spokesperson, Mao Ning, confirmed the resumption of the Beijing-Pyongyang direct flight route [1] - The restoration of passenger flights is expected to facilitate friendly interactions between the peoples of China and North Korea [1]