Core Viewpoint - The Hong Kong aviation stocks continue to rise, with China Eastern Airlines hitting a new high, indicating positive market sentiment in the aviation sector [1] Group 1: Company Performance - China Eastern Airlines saw an increase of over 4% in early trading, reaching a new phase high [1] - China Southern Airlines is up by 1.5% [1] - Air China has increased by 1% [1] - Cathay Pacific is also experiencing a rise [1]

Group 1 - The core viewpoint of the article highlights a bullish trend in the Hong Kong aviation sector, with significant stock price increases for major airlines such as China Eastern Airlines and China Southern Airlines, indicating a potential super cycle in the aviation industry [1] - Cathay Pacific's research report maintains a bullish outlook on aviation fuel transportation, predicting that the industry will experience record high profitability in Q4, driven by high passenger load factors and low ticket prices [1] - The report suggests that the recent seasonal transition has had a weaker impact than in previous years, with business travel remaining active and supporting a year-on-year increase in both volume and price [1] Group 2 - The article mentions that the U.S. government is likely to end its shutdown, with President Trump stating that all air traffic controllers must return to work immediately, which could positively impact the aviation sector [1] - The stock performance of various airlines is noted, with China Eastern Airlines up 4.56%, China Southern Airlines up 1.54%, and Air China up 1.08%, reflecting strong market sentiment [1] - The MACD golden cross signal formation indicates a positive trend for these stocks, suggesting continued upward momentum in the aviation sector [1]

Summary of Airline Industry Conference Call Industry Overview - The airline industry is experiencing a recovery in fundamentals, outperforming other cyclical consumer sectors, with continuous profit improvement in the first three quarters of the year, and an expectation of profitability for the entire year due to declining oil prices and increased passenger load factors [1][3][5]. Key Factors Influencing Profitability - Key factors affecting airline profitability include ticket prices, passenger load factors, and oil prices. A 1% increase in passenger load factor has a more significant impact on overall industry profitability than a 1% increase in ticket prices [1][5]. - The decline in Brent crude oil prices has contributed to lower fuel costs, aiding profitability [1][5]. Future Expectations - Despite a challenging macro environment, the airline industry has achieved profitability, indicating substantial future growth potential. Ticket prices are expected to rise in 2026, further driving profit growth [1][6]. - The current macro environment shows that travelers are price-sensitive, leading to cautious pricing strategies. The turning point in supply and demand is expected to manifest more in passenger load factors rather than ticket price increases in 2025, with a higher likelihood of price increases in 2026 [1][7]. Supply and Demand Dynamics - Since 2019, the fleet size of airlines has expanded by over 20%. Currently, demand growth exceeds supply growth, which may eventually reflect in ticket prices [1][8]. - The recovery of international flights to 85% capacity has become a significant growth factor, with airlines reallocating more capacity to international markets, resulting in tighter domestic supply [3][9]. Ticket Price Trends - In 2025, ticket prices showed strong performance during the off-peak season, while peak season prices were weaker compared to previous years. This trend indicates a gradual recovery in business travel demand [11]. - The correlation between domestic ticket prices and commercial real estate metrics in major cities suggests that business travel activity significantly influences ticket pricing [11]. Historical Performance and Future Outlook - Historically, airline stocks have performed well in the fourth quarter, with 14 out of the last 20 years showing increases, often driven by macroeconomic expectations or specific policy changes [12]. - The fundamentals of airline stocks are gradually becoming clearer, with a significant increase in operational scale, indicating a more optimistic profitability outlook for the next two to three years [13][16]. Investment Strategy - For investment, airlines with relatively low valuations and lagging performance, such as China Southern Airlines and Spring Airlines, are recommended. For those seeking cyclical elasticity, Air China and China Eastern Airlines are preferred due to their significant marginal improvements and greater profit elasticity [18]. Conclusion - The airline industry is positioned for growth, with improving fundamentals, a favorable supply-demand dynamic, and potential for increased ticket prices in the near future. Investors are encouraged to consider cyclical stocks within this sector as they may offer substantial returns in the upcoming quarters [1][6][17].

Core Insights - The appreciation of the Renminbi has led to a significant increase in the related sectors, with a 3.62% rise in the Renminbi appreciation beneficiary sector on the previous trading day [1] - Major stocks benefiting from the Renminbi appreciation include China Duty Free Group, which surged by 10% [1] Market Performance - The Shanghai Composite Index closed at 4018.6, up 0.53%, while the Shenzhen Component Index closed at 13427.61, up 0.18% [1] - Key stocks and their performance include: - China Duty Free Group (601888): Closed at 86.89, up 10.00% with a trading volume of 913,800 shares and a transaction value of 7.687 billion [1] - Pinwa Food (300892): Closed at 36.70, up 8.84% with a trading volume of 109,600 shares and a transaction value of 392 million [1] - China Eastern Airlines (600115): Closed at 5.26, up 7.35% with a trading volume of 3,049,300 shares and a transaction value of 1.572 billion [1] Capital Flow - The Renminbi appreciation beneficiary sector saw a net inflow of 876 million in main funds, while retail investors experienced a net outflow of 392 million [2][3] - Specific stock capital flows include: - China Duty Free Group: Main funds net inflow of 113.8 million, retail net outflow of 45.2 million [3] - Sun Paper (002078): Main funds net inflow of 85.86 million, retail net outflow of 52.24 million [3] - China National Airlines (601111): Main funds net inflow of 28.98 million, retail net outflow of 57.41 million [3]

Core Insights - The aviation and airport sector experienced a significant increase of 4.31% on November 10, with China Eastern Airlines leading the gains [1] - The Shanghai Composite Index closed at 4018.6, up 0.53%, while the Shenzhen Component Index closed at 13427.61, up 0.18% [1] Stock Performance - China Eastern Airlines (600115) closed at 5.26, with a rise of 7.35% and a trading volume of 3.0493 million shares, amounting to 1.572 billion yuan [1] - Other notable performers included: - Juneyao Airlines (603885) at 14.04, up 6.12% [1] - Air China (601111) at 8.79, up 5.90% [1] - China Southern Airlines (600029) at 7.24, up 3.72% [1] Capital Flow - The aviation and airport sector saw a net outflow of 313 million yuan from institutional investors, while retail investors contributed a net inflow of 7.8603 million yuan [1] - The detailed capital flow for selected stocks included: - HNA Holding (600221) with a net inflow of 80.7268 million yuan from institutional investors [2] - Shanghai Airport (600009) with a net inflow of 68.0565 million yuan from institutional investors [2] - China Southern Airlines (600029) with a net outflow of 48.7018 million yuan from institutional investors [2]

Core Insights - As of November 10, a total of 108 stocks reached their 52-week highs, with notable performers including Taijin Holdings (08321), OKURA HOLDINGS (01655), and Hejia Holdings (00704) achieving high rates of 125.00%, 84.90%, and 53.57% respectively [1] Summary by Category 52-Week Highs - Taijin Holdings (08321) closed at 0.620 with a peak price of 0.900, marking a 125.00% increase - OKURA HOLDINGS (01655) reached a closing price of 0.280 and a high of 0.355, reflecting an 84.90% rise - Hejia Holdings (00704) had a closing price of 0.345 and a peak of 0.430, showing a 53.57% increase - Other notable stocks include Sanhe Chemical (00301) with a 41.67% increase and Aide New Energy (02623) with a 36.25% rise [1] 52-Week Lows - Wangshan Wangshui-B (02630) recorded a closing price of 52.850 and a low of 51.000, resulting in a -21.84% decrease - Eight Horses Tea (06980) had a closing price of 52.850 and a low of 51.100, reflecting a -10.98% decline - New Enjoy Times (08519) reached a low of 0.270, marking a -10.00% drop - Other significant declines include Jiujiang Bank (06190) at -8.99% and Kun Group (00924) at -6.98% [3][4]

中新网天津11月10日电 (记者 贾天勇)9日，为纪念"两航起义"76周年，传承弘扬爱国主义精神，"翼展爱 国光辉载旗荣耀北飞——国航C919重飞'两航起义'北飞光辉航程"系列主题活动在天津举行。此次活动 通过国航C919重飞"两航起义"航线主题航班和天津"两航起义"展馆首展"空地联动"，追溯新中国民航事 业的开端，致敬"两航起义"的爱国壮举，礼赞中国民航事业的先驱者与奠基人，生动呈现了新时代民航 建设的跨越式发展。 由原先张 贵庄机场候机楼改建而成的两航起义展馆外景。记者 贾天勇 摄 飞机到达后不久，由天津张贵庄老候机楼改建而成的"两航起义"展馆进行首展启幕，来自中国民用航空 局、天津市政府、国务院国资委、香港爱国主义教育工作小组、香港民航处、香港"两航"联谊会、香港 民航工会、中航集团及媒体代表等180人共同参加首展。中国航空集团有限公司党组书记刘铁祥，香港 爱国主义教育工作小组成员邝美云，香港民航处处长廖志勇，中国民用航空局总飞行师熊杰等嘉宾致 辞。仪式上播放了"两航起义"历史短片，多位两航起义亲历者的后代捐赠了珍贵历史物件，两位年近百 岁的起义亲历者王惠德先生、丁裕康先生亲临现场，深情回望那段峥嵘岁月 ...

Investment Rating - The transportation industry is rated as "Outperform" [2] Core Insights - Crude oil freight rates have decreased, and long-distance shipping rates have also declined. The China Import Crude Oil Composite Index (CTFI) reported 2037.91 points on November 6, down 16.0% from October 30. The VLCC market is seeing a gradual entry of cargoes for late November, with a balanced supply of available vessels [3][14] - The Yufeng Future M1 aircraft has received over 2 billion yuan in orders, with 200 units ordered from domestic and international clients. The International Air Transport Association (IATA) has added the Chinese yuan as a settlement currency, expected to be operational by December 2025 [3][16][17] - China Post and COSCO Shipping have signed a strategic cooperation agreement, and ZTO Express has launched four new logistics hubs to enhance service efficiency during peak seasons [3][24][25] Industry High-Frequency Data Tracking - **Air Cargo**: The Baltic Air Freight Index has increased month-on-month but decreased year-on-year. The Shanghai outbound air freight price index was 5366.00 points, down 2.3% year-on-year but up 7.1% month-on-month [26] - **Shipping Ports**: The SCFI index reported 1495.10 points, down 3.59% week-on-week and down 35.88% year-on-year. The CCFI index was 1058.17 points, up 3.60% week-on-week but down 23.78% year-on-year [36] - **Express Logistics**: In September 2025, express delivery volume increased by 12.70% year-on-year, with revenue rising by 7.20%. Cumulative express delivery volume for the first nine months of 2025 reached 1450.8 billion pieces, up 17.20% year-on-year [48] Investment Recommendations - Focus on the equipment and manufacturing export chain, recommending COSCO Shipping, China Merchants Energy Shipping, and Huamao Logistics. Attention is also drawn to Eastern Airlines Logistics and China Foreign Trade [5] - Opportunities in low-altitude economy investments are highlighted, recommending CITIC Offshore Helicopter [5] - Investment opportunities in the highway and railway sectors are suggested, recommending Ganyue Expressway, Beijing-Shanghai High-Speed Railway, and others [5] - The report also suggests investment opportunities in the cruise and ferry sectors, recommending Bohai Ferry and Straits Shares [5]

Macro Research - The core inflation and overall CPI have been diverging since the beginning of the year, driven by anti-involution governance, fiscal support, and rising gold prices, which are beneficial for the long-term recovery of core inflation [2][5] - In October, the CPI increased by 0.2% year-on-year and month-on-month, while the PPI decreased by 2.1% year-on-year but rebounded to 0.1% month-on-month, indicating a steady recovery in inflation [3][16] Overseas Strategy Research - The recent strengthening of the US dollar is primarily due to the US government shutdown causing liquidity issues, hawkish statements from the Federal Reserve, and weakness in non-US currencies [6][25] - Historically, a strong dollar has led to capital outflows from Hong Kong stocks, and under the currency peg system, it may temporarily affect local liquidity and sectors in Hong Kong [7][26] - Short-term focus should be on the reopening of the US government and economic data, while mid-term prospects for Hong Kong stocks are optimistic, particularly in the technology sector [8][27] Transportation Industry Research - The Chinese aviation sector is expected to enter a "super cycle" as supply and demand gradually recover, with a significant increase in profitability anticipated [9][10] - The supply side is constrained by airspace bottlenecks, leading to a low growth environment, while demand is expected to remain robust due to the ongoing aviation population dividend [11][10] - The recovery in demand will drive ticket prices higher, contributing to a sustainable increase in profitability for airlines [10][11]

Core Points - The event commemorated the 76th anniversary of the "Two Airlines Uprising" with a special flight from Hong Kong to Tianjin using the C919 aircraft [1] - The flight, CA104, took off from Hong Kong International Airport at 13:19 and landed at Tianjin Binhai International Airport at 16:01, successfully completing the mission [1] - The "Two Airlines Uprising" is a significant historical event in China's aviation history, where over 2,000 employees led by Liu Jingyi and Chen Zhuolin returned 12 aircraft to the new China in 1949 [1] Company and Industry Summary - The C919 aircraft is part of China's efforts to enhance its aviation capabilities and commemorate historical events [1] - The event highlights the importance of national pride and historical legacy in the development of China's civil aviation sector [1] - The "Two Airlines Uprising" is recognized as a pivotal moment in the history of the People's Liberation War and the establishment of civil aviation in China [1]