JUNEYAOAIR(SH:603885) Changjiang Securities·2025-11-09 09:15Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a decline in profit for Q3 2025, with operating revenue of 6.41 billion yuan, a year-on-year decrease of 1.88%, and a net profit attributable to shareholders of 580 million yuan, down 25.3% year-on-year [5][11]. - The decline in profit was primarily attributed to one-time maintenance costs and prolonged engine repair cycles, which affected operational efficiency [11]. - Despite the profit decline, the company demonstrated resilience in revenue, with a smaller drop in unit revenue compared to previous quarters, indicating potential for recovery [11]. Summary by Sections Financial Performance - In Q3 2025, the company experienced a 1.4% decrease in available seat kilometers (ASK) and a 0.4% decrease in revenue passenger kilometers (RPK), with a passenger load factor of 86.6%, an increase of 0.9 percentage points year-on-year [11]. - The unit non-fuel cost increased by 6.2% due to extended engine maintenance and one-time repair expenses related to aircraft leasing [11]. - The company recorded financial expenses of 250 million yuan in Q3 2025, a decrease of 110 million yuan year-on-year, reflecting ongoing efforts to reduce financial burdens [11]. Investment Outlook - The company is considered an undervalued excellent private enterprise with gradually releasing profit elasticity due to its leading position in high-revenue routes and superior operational management [11]. - Forecasted net profits for 2025-2027 are 1 billion, 1.59 billion, and 2.06 billion yuan, respectively, with current market price-to-earnings ratios of 28.2, 17.8, and 13.7 times, indicating strong cost-effectiveness for investment [11].