JUNEYAOAIR(SH:603885) Xin Lang Cai Jing·2025-09-12 15:36Core Viewpoint - 吉祥航空 reported a dual growth in revenue and net profit for the first half of 2025, with total revenue reaching 11.067 billion yuan, a year-on-year increase of 1.02%, and net profit attributable to shareholders at 505 million yuan, up 3.29% year-on-year. However, the net profit excluding non-recurring gains and losses fell by 14.27% to 408 million yuan, indicating a weakening in the company's core business profitability [1][2]. Group 1: Financial Performance - The company's operating revenue for the first half of 2025 was 11.067 billion yuan, a slight increase of 1.02% year-on-year, while operating costs grew by 5.65%, outpacing revenue growth by 4.5 percentage points [2][4]. - Operating profit for the first half of 2025 was 576.1 million yuan, reflecting an 11.39% decline year-on-year due to the adverse effects of intense industry competition [3]. - The gross profit margin for the first half of 2025 was 11.84%, a significant decrease of 24.61% compared to the same period last year, indicating reduced profitability in core operations [1][3]. Group 2: Strategic Adjustments - In response to domestic market competition, 吉祥航空 reduced domestic passenger capacity by 9.76% while increasing international passenger capacity by 65.55% in the first half of 2025 [3]. - The utilization rate of wide-body aircraft improved significantly by 25%, reaching 14.75 hours per day, although the international route passenger load factor was 78.4%, 4.3 percentage points lower than in 2019, suggesting room for improvement [3]. Group 3: Debt and Financial Health - As of June 30, 2025, the company's interest-bearing debt ratio rose to a new high of 70.65%, with total interest-bearing debt amounting to 35 billion yuan, a 10% year-on-year increase [4]. - The debt-to-equity ratio has been increasing, with recent figures at 209.5%, 228.56%, and 395.09% over the last three half-year reports [4]. Group 4: Industry Challenges - The civil aviation industry is facing intense "involution" competition, leading to a decline in overall revenue levels, characterized by the situation of "more passengers but less profit" [4]. - Future risks include lower-than-expected travel demand, oversupply in the market, intensified competition, rising oil prices, and potential depreciation of the yuan, all of which may continue to impact 吉祥航空's performance [4].