Group 1: Industry Overview - The domestic aviation industry in mainland China showed a strong rebound in the second quarter, but the performance during the summer holiday was not as ideal due to weak business travel demand [1] - International ticket prices have significantly dropped mainly due to oversupply on the China-Japan routes, as airlines overestimated demand during the Japan Expo [1] - Future projections indicate that net demand growth rates for 2025 to 2027 will be 3%, 1%, and 1%, respectively, leading to a significant narrowing of the year-on-year decline in international ticket prices [1] - Domestic ticket prices are expected to improve from September, supported by a decrease in oil prices, which will positively impact airline profitability [1] Group 2: Company Recommendations - China National Aviation (00753) is favored due to its high market share in profitable routes, with target prices raised to HKD 7.3 for H-shares and RMB 9.6 for A-shares, rated "Buy" [2] - China Eastern Airlines (00670) has its H-share target price increased to HKD 3.7 and A-share target price to RMB 5.1, also rated "Buy" [2] - China Southern Airlines (01055) sees its H-share target price raised to HKD 4.6 and A-share target price to RMB 6.2, rated "Buy" for H-shares and "Neutral" for A-shares [2]
高盛：内地航空业暑假表现逊预期 上调三大内地航空股目标价