Shenwan Hongyuan Securities·2025-10-31 03:22Investment Rating - The investment rating for China Eastern Airlines is "Outperform" (maintained) [1] Core Views - The report highlights that the recovery in international markets is leading to improved operational performance for China Eastern Airlines. The company has reported better-than-expected earnings, with a significant increase in both revenue and net profit for the third quarter of 2025 [5][6]. Summary by Sections Market Data - Closing price as of October 30, 2025, is 4.81 yuan - Market capitalization is 82,321 million yuan - Price-to-book ratio is 8.2 [1] Financial Performance - For Q3 2025, the company achieved a revenue of 39,592 million yuan, a year-on-year increase of 3.14% - Net profit attributable to shareholders was 3,534 million yuan, up 34.37% year-on-year - For the first three quarters of 2025, total revenue reached 106,414 million yuan, with a net profit of 2,103 million yuan, marking a turnaround from losses in the previous year [5] Operational Data - The company is focusing on enhancing its hub operations and has successfully implemented its "Three Flights" strategy, leading to increased passenger traffic and capacity utilization - Domestic passenger load factor improved, with domestic ASK (Available Seat Kilometers) up 3.36% year-on-year and RPK (Revenue Passenger Kilometers) up 6.04% year-on-year - Internationally, the company has expanded its routes and capacity, with international ASK recovering to 113.63% of the 2019 level [5] Financial Projections - Revenue projections for 2025 are set at 139,779 million yuan, with a year-on-year growth rate of 5.8% - Expected net profit for 2025 is 1,942 million yuan, with a significant increase projected for 2026 and 2027 [5][7] - The report anticipates continued improvement in operational performance, driven by the recovery of international routes and increasing market demand [5]