Eastern Air Logistics (SH:601156) Xin Lang Cai Jing·2025-09-01 00:32Core Insights - The company's 2Q25 performance exceeded expectations, with a revenue of 11.256 billion yuan, a slight year-on-year decrease of 0.26%, and a net profit of 1.289 billion yuan, reflecting a year-on-year increase of 0.90% [1] Financial Performance - In 2Q25, the company reported a revenue of 5.77 billion yuan, with year-on-year and quarter-on-quarter changes of -4.8% and +5.2% respectively; gross profit was 1.15 billion yuan, with year-on-year changes of -10.3% and quarter-on-quarter changes of +20.1%; net profit attributable to shareholders was 740 million yuan, with year-on-year and quarter-on-quarter increases of +8.0% and +36.3% respectively [1] - Other income increased by 383% year-on-year to 120 million yuan, primarily due to government subsidies for new routes [2] Business Segments - Revenue from air express, integrated logistics, and ground services in 2Q25 showed year-on-year changes of +13.4%, -21.0%, and +6.0% respectively; gross profit for these segments changed by +3.2%, -24.7%, and -12.2% respectively [1] - The integrated logistics segment faced pressure from cross-border e-commerce small package tariffs, with a 30% year-on-year decrease in cross-border e-commerce cargo volume to 48,000 tons and a 27% year-on-year revenue decline to 2.04 billion yuan [1] Operational Efficiency - The company expanded its fleet and improved operational efficiency, introducing two B777 freighters in both 1H25 and July-August, bringing the total to 18 freighters, a year-on-year increase of 28.5% [4] - The company optimized its route network, increasing the daily utilization rate of freighters by 0.61 hours to 13.55 hours, with total cargo turnover increasing by 5.6% year-on-year to 4.1 billion ton-kilometers [4] Market Trends - The demand for air transport to the U.S. has been pressured by tariff disruptions, with a year-on-year decrease of 8.2% in cargo volume to North America, which now accounts for 15.9% of China's air export volume, down 3.5 percentage points [3] - The overall export air cargo volume from China increased by 12% in 1H25, with significant growth in exports to Europe, Asia-Pacific, and other regions [3] Profit Forecast and Valuation - Due to better-than-expected fleet expansion and operational resilience, the company raised its net profit forecasts for 2025 and 2026 by 25.2% and 22.0% to 2.676 billion yuan and 2.853 billion yuan respectively [5] - The target price was increased by 27.6% to 18.50 yuan, corresponding to 11.0 times the 2025 earnings and 10.3 times the 2026 earnings, indicating a potential upside of 19.4% from the current stock price [5]