Group 1: Trade Relations and Economic Outlook - The company views the current US-China trade relations as being in a "pause period," with ongoing negotiations and a focus on mitigating impacts on the logistics industry [2][3] - China's economy grew by 5.3% year-on-year in the first half of 2025, demonstrating resilience and potential for development [2][3] - The company will closely monitor policy changes and market reactions to trade protectionism and tariff policies [3] Group 2: Future Plans and Strategic Focus - The company aims to enhance its core competitiveness by focusing on digitalization, technological innovation, and green development [3][4] - Key initiatives include improving safety management, upgrading capacity, expanding cross-border e-commerce services, and promoting smart logistics ecosystems [4][5] - The company is committed to aligning with national strategies to strengthen international air cargo capabilities and ensure supply chain stability [4][5] Group 3: Operational Adjustments and Performance Metrics - In the first half of 2025, the company adjusted its capacity layout and optimized its route network, launching several new cargo routes [4] - The average daily utilization of all-cargo aircraft was approximately 13.29 hours, showing significant improvement compared to the same period in 2024 [4] - The company is actively working on its "14th Five-Year Plan" to enhance resource efficiency and investment returns [5]

Core Viewpoint - The aviation sector is experiencing a positive trend due to increased demand during the upcoming National Day and Mid-Autumn Festival holidays, with significant growth in ticket bookings and a favorable supply-demand balance expected to enhance profitability for airlines [1][2][3]. Industry Overview - The aviation industry is anticipated to benefit from a reduction in "involution" competition, leading to a more rational market environment and improved operational efficiency [1][2]. - The Civil Aviation Administration of China (CAAC) is actively working to optimize route networks and control flight schedules, which is expected to stabilize the market and improve profitability for airlines [2][4]. Demand Insights - Domestic flight ticket bookings for the upcoming holidays have exceeded 4.52 million, with a daily average increase of over 25% compared to the previous year [1]. - The average price of domestic tickets during the National Day holiday is expected to remain stable compared to last year, with a pattern of higher prices at the beginning and end of the holiday period [2]. Supply Dynamics - The supply of domestic flights is expected to grow slowly, with the CAAC maintaining strict control over flight schedules and capacity [4]. - The overall capacity for the peak season is limited, and airlines are likely to face challenges in increasing operational efficiency due to ongoing supply chain disruptions [4][5]. Financial Performance - China National Aviation achieved a revenue of 80.76 billion yuan in the first half of 2025, with a net loss of 1.81 billion yuan, showing a reduction in losses compared to the previous year [6]. - China Eastern Airlines reported a revenue of 66.82 billion yuan in the first half of 2025, with a net loss of 1.43 billion yuan, also reflecting an improvement from the previous year [7]. - China Southern Airlines recorded a revenue of 86.29 billion yuan in the first half of 2025, with a net loss of 2.03 billion yuan, indicating a continued recovery in operational performance [7].

Investment Rating - The report maintains an "Overweight" rating for the aviation sector, indicating a positive outlook for the industry compared to the overall market performance [7]. Core Insights - The aviation industry is experiencing steady growth in capacity and passenger volume, with August data showing a year-on-year increase in domestic passenger transport volume by 3.0% and domestic capacity by 1.3% compared to 2024 [3][4]. - The report highlights that airlines are increasing capacity to meet the demand during the peak summer travel season, with a notable rise in passenger turnover and load factors across major airlines [4]. - The analysis suggests that the supply-demand balance in the domestic market is improving, with significant growth in capacity and volume for airlines like Spring Airlines and China Eastern Airlines [4]. Summary by Sections August Data Overview - In August, the average daily aircraft utilization rate was 8.9 hours, showing a month-on-month increase of 0.3% and a year-on-year increase of 0.2% [4]. - Major airlines reported varying year-on-year changes in capacity (ASK) and passenger turnover (RPK), with Spring Airlines leading in growth [4][5]. Domestic Market Performance - The domestic market shows a balanced growth in supply and demand, with significant increases in capacity and volume for Spring Airlines, China Eastern Airlines, and China Southern Airlines [4]. - Year-on-year changes in ASK and RPK for major airlines indicate a mixed performance, with some airlines like Spring Airlines showing strong growth [5]. International Market Performance - Airlines are significantly increasing international capacity, with several airlines surpassing pre-pandemic levels in terms of capacity and passenger turnover [4]. - The report provides detailed year-on-year comparisons for international operations, highlighting the recovery trajectory of major airlines [5]. Investment Recommendations - The report recommends a focus on airlines such as China National Aviation, Spring Airlines, and China Eastern Airlines, citing strong supply logic and expected growth in passenger volume and load factors [4][7]. - The analysis anticipates a gradual slowdown in fleet supply growth over the next 3-5 years, with resilient demand expected to support the sector [4].

Investment Rating - The report maintains a "Recommendation" rating for the aviation industry, indicating an expectation of outperforming the benchmark index by 10%-20% over the next six months [5]. Core Insights - The aviation industry shows steady growth in supply and demand as of August 2025, with ticket prices performing slightly better than in July. The report highlights a recent recovery in both volume and pricing [1]. - Domestic demand remains resilient, supported by internal growth and ongoing recovery in international routes. Supply constraints continue to be a factor, while falling oil prices are expected to reduce costs [7]. - The report emphasizes the potential for investment in leading companies within the industry, particularly focusing on low-cost carriers and those with strong operational efficiencies [7]. Summary by Sections Airline Data Analysis - In August, the overall ASK (Available Seat Kilometers) growth year-on-year was led by Spring Airlines (12.0%), followed by Eastern Airlines (6.8%), Southern Airlines (6.4%), Air China (2.3%), and Juneyao Airlines (-2.7%). RPK (Revenue Passenger Kilometers) growth was similarly led by Spring Airlines (12.2%) [1]. - Cumulative data from January to August shows Spring Airlines leading in ASK growth (10.0%) and Eastern Airlines leading in RPK growth (11.3%) [1]. - Domestic routes in August saw Spring Airlines with an ASK growth of 9.1% and RPK growth of 9.6%, while Air China experienced a decline in both metrics [1]. - International routes showed significant growth for Spring Airlines (ASK +27.2%, RPK +26.3%) and a strong performance from Juneyao Airlines [2]. Load Factor and Fleet Size - The load factor in August was highest for Spring Airlines at 93.9%, with a year-on-year increase of 0.2 percentage points. The cumulative load factor from January to August for Spring Airlines was 91.2%, reflecting a slight decline [3]. - The total fleet size of the five listed airlines increased by 12 aircraft in August, with a year-on-year growth of 3.6% [3]. Investment Recommendations - The report suggests a positive outlook for investment in the aviation sector, particularly for companies like Huaxia Airlines, which is expected to reach a sustainable operational turning point, and Spring Airlines, which is leveraging its low-cost competitive advantage [7]. - The report anticipates a recovery in international routes, with companies like Juneyao Airlines expected to benefit from efficient operations of wide-body aircraft [7].

"中国一直是我们旅游产业和对外贸易往来最重要的市场之一。"巴仕迪指出，中国国际航空公司最近宣 布将增加中国与南非之间直飞航班的班次，这将进一步促进两国之间的经贸往来和文旅交流。期待南非 国家航空公司很快重新开通直飞中国的航线。南非将继续专注于在中国推广深度主题游、定制化高质量 旅游以及文化交流活动。 2025年11月，G20峰会将于南非约翰内斯堡举办——这是G20首次落地非洲，也体现了南非作为非洲第 一大经济体在国际舞台上日益提升的影响力。这一盛会不仅将深化中南在多领域的合作，也为南非旅游 带来全球性的曝光与机遇。 南非旅游局亚洲、澳洲及中东区域总经理高彬礼在致辞中表示："中国是南非旅游最关键的战略客源市 场之一。伴随'可信赖旅行社计划 (TTOS)'的深化落实，中国游客赴南非旅游复苏态势显著。2024年上 半年中国游客数量已恢复至2019年同期的45%，2025年我们有望实现进一步跨越。我们也期待借即将于 南非约翰内斯堡举办的G20峰会这一历史性机遇，进一步提升两国在旅游、文化和经贸领域的联动。" 今年2月，南非内政部推出TTOS"可信赖旅行社计划"，旨在通过授信旅行社为游客提供签证申请快速通 道，3日内即 ...

Core Insights - The aviation and airport sector experienced a rise of 1.24% on September 16, with HNA Holding leading the gains [1] - The Shanghai Composite Index closed at 3861.87, up 0.04%, while the Shenzhen Component Index closed at 13063.97, up 0.45% [1] Stock Performance - HNA Holding (600221) closed at 1.69, with a gain of 4.32% and a trading volume of 10.23 million shares, amounting to a turnover of 1.702 billion yuan [1] - Huaxia Airlines (002928) closed at 9.80, up 3.92%, with a trading volume of 211,400 shares and a turnover of 204 million yuan [1] - Spring Airlines (601021) closed at 53.50, gaining 1.98% with a trading volume of 74,400 shares and a turnover of 397 million yuan [1] - China National Airlines (601111) closed at 7.92, up 1.67%, with a trading volume of 714,600 shares and a turnover of 564 million yuan [1] - China Eastern Airlines (600115) closed at 4.02, gaining 1.01% with a trading volume of 2.1582 million shares and a turnover of 866 million yuan [1] - Other notable performances include: - Xiamen Airlines (600897) down 0.07% to 14.72 [1] - Shanghai Airport (600009) down 0.06% to 32.06 [1] Capital Flow - The aviation and airport sector saw a net outflow of 271 million yuan from institutional investors, while retail investors contributed a net inflow of 178 million yuan [2] - HNA Holding experienced a net inflow of 79.14 million yuan from institutional investors, despite a net outflow from retail investors [2] - Spring Airlines had a net inflow of 7.38 million yuan from institutional investors, with retail investors contributing positively [2] - China National Airlines faced a net outflow of 4.23 million yuan from institutional investors, while retail investors had a significant net outflow [2] - Xiamen Airport saw a net outflow of 1.34 million yuan from institutional investors, but retail investors contributed positively [2]

Market Overview - The Hong Kong stock market showed mixed performance on September 16, with the Hang Seng Index slightly down by 0.03%, reaching a high of 26,601.59 points, while the Hang Seng China Enterprises Index increased by 0.02% and the Hang Seng Tech Index rose by 0.56% [1][2]. Sector Performance - Major technology stocks exhibited varied performance, with Meituan up by 3%, NetEase by 1.25%, while JD.com fell over 1% and Alibaba and Kuaishou saw slight declines [2][4]. - The photovoltaic industry saw significant price increases across multiple segments, leading to active trading in solar stocks, with Fuyao Glass rising by 5% [2][6]. - The tourism and sightseeing sector experienced collective gains, with Hong Kong Travel up by 4.4%, driven by the upcoming National Day and Mid-Autumn Festival holidays [2][9]. - Airline stocks surged, with China National Airlines and China Eastern Airlines both rising over 4%, supported by a Goldman Sachs report indicating potential improvements in domestic ticket prices starting in September [2][7]. Biotechnology Sector - The biotechnology sector faced significant declines, with Jiangsu Hengrui Medicine dropping over 53%, and other companies like Singlomics and CStone Pharmaceuticals also experiencing losses [3][12][13]. Real Estate Sector - The domestic real estate sector continued to decline, with R&F Properties falling by 8% and other major developers like Sunac China and Shimao Group also reporting losses [3][14][15]. Automotive and Lithium Battery Sectors - The automotive sector saw gains, with Geely Automobile up over 3%, and other companies like Li Auto and BYD also rising [10][11]. - The lithium battery sector remained active, with companies like Hongqiao Group and CATL showing positive performance, as analysts continue to recommend the energy storage sector [10][11]. Investment Insights - The AI sector remains a key focus for investors, with strong growth in cloud services driven by AI demand, as indicated by recent reports from domestic cloud providers [22].

Economic News - In the first half of the year, China's GDP grew by 5.3% year-on-year, with domestic demand contributing 68.8% to economic growth, showcasing the resilience of the large domestic market despite external challenges [1] - The People's Bank of China emphasized the need for a strong global financial governance framework to prevent and resolve international economic and financial crises [1] - The China Engineering Machinery Industry Association reported a 12.4% year-on-year decline in the sales of graders in August 2025, with domestic sales increasing by 16.1% [1] - Guangdong Province aims to achieve a revenue of 100 billion yuan in the toy industry by 2027, with AI toy penetration expected to exceed 30% [1] - Zhejiang Province has initiated a financial service mechanism for urban renewal projects, with a total credit amount of 337.59 billion yuan approved for 49 key projects [1] - The Ministry of Agriculture and Rural Affairs reported that over 1,000 enterprises are involved in national agricultural technology projects, accounting for 51% of total participants [1] - China's trade with ASEAN grew by 9.7% in the first eight months of the year, maintaining ASEAN as China's largest trading partner [1] Important Company News - RIFENG Co., Ltd. received approval from the China Securities Regulatory Commission for a stock issuance to specific investors [4] - Air China reported a 3.2% year-on-year increase in passenger turnover for August 2025, with international capacity increasing by 12.6% [4] - China Pacific Insurance announced a transfer of shares from Shanghai International Group to Shanghai Jiu Shi Group and Shanghai Electric, with no change in control [4] - Longpan Technology signed a procurement agreement with CATL for lithium iron phosphate cathode materials, with total sales expected to exceed 6 billion yuan [4] - Aoyang Health announced a share transfer agreement, with Aoyang Group transferring 20% of its shares to Yuesheng Technology for a total of 593 million yuan [4] Daily Research Report - As of August 2025, the total social financing (TSF) grew by 8.8% year-on-year, with a decrease in new loans and a slowdown in credit demand [5][6] - The government bond financing's contribution to TSF is expected to decline as the issuance slows down, leading to a potential decrease in credit growth [6] - The new loans in August amounted to 590 billion yuan, with a year-on-year decrease of 310 billion yuan [7] - The average interest rate for new corporate loans was approximately 3.1%, showing a slight decrease [7] - M1 growth continued to rise while M2 growth remained stable, indicating a shift in deposit trends [8] Company Analysis - ZTO Express reported a business volume of 9.847 billion pieces in Q2 2025, a year-on-year increase of 16.5%, but a slight decline in market share [10][11] - The company adjusted its annual business volume guidance down to 38.8-40.1 billion pieces, reflecting a more competitive environment [11] - The average revenue per package decreased slightly, but the increase in key account customers helped mitigate some revenue loss [12][13] - The company's single-package gross profit margin faced pressure due to increased competitive pricing, but recovery is expected in the second half of the year [14]

Core Viewpoint - The aviation stocks have risen in the afternoon trading session, driven by increased demand for domestic and international flights during the upcoming Mid-Autumn Festival and National Day holiday periods [1] Group 1: Stock Performance - China National Aviation (601111) rose by 4.82% to HKD 5.44 [1] - Eastern Airlines (00670) increased by 3.74% to HKD 3.05 [1] - Southern Airlines (600029) gained 2.65% to HKD 3.88 [1] Group 2: Ticket Booking Trends - As of September 8, domestic flight ticket bookings for the Mid-Autumn and National Day holidays exceeded 3.26 million, with a daily average increase of over 26% compared to the same period last year [1] - International flight ticket bookings surpassed 1.16 million, with a daily average increase of approximately 15% year-on-year [1] Group 3: Market Insights - According to Guotai Junan Securities, significant activities in early September have led to a rapid recovery in market volume and pricing, particularly in Beijing, with active business travel demand [1] - Anticipated major meetings in October are expected to shift business travel demand forward, supporting continued positive trends in volume and pricing through mid to late September [1] - Forecasts suggest that airline profitability may continue to grow year-on-year in Q3 2025, despite potential price wars in Q4 2024 leading to lower ticket prices [1] - The industry is expected to significantly reduce losses and potentially turn profitable for the year, driven by a recovery in business travel demand and a slowdown in fleet growth [1]

Core Viewpoint - The aviation sector is experiencing a rise in stock prices, driven by increased demand for domestic and international flights during the upcoming Mid-Autumn Festival and National Day holidays, with significant growth in ticket bookings compared to last year [1] Group 1: Stock Performance - As of the report, China National Aviation (00753) increased by 4.82% to HKD 5.44, Eastern Airlines (00670) rose by 3.74% to HKD 3.05, and Southern Airlines (01055) gained 2.65% to HKD 3.88 [1] Group 2: Ticket Booking Trends - As of September 8, domestic flight ticket bookings for the Mid-Autumn Festival and National Day holidays exceeded 3.26 million, with an average daily booking increase of over 26% compared to the same period last year [1] - International flight ticket bookings surpassed 1.16 million, with a daily booking increase of approximately 15% year-on-year [1] Group 3: Market Insights - According to Guotai Junan Securities, following significant events in early September, the Beijing market has seen a rapid recovery in both volume and price, with active demand from business travelers [1] - Anticipating the impact of major meetings in October, business travel demand is expected to shift forward, supporting continued positive trends in volume and pricing through mid to late September [1] - It is projected that airline profitability will continue to grow year-on-year in Q3 2025, with expectations of reduced losses in the off-peak season due to a price war in Q4 2024, leading to an overall industry turnaround [1] - The long-term outlook for the aviation industry remains positive, with expectations for an increase in profitability as business travel demand recovers and market pricing becomes more competitive [1]