Core Viewpoint - The company reported its Q3 2025 results, showing a slight revenue increase but a significant decline in net profit, indicating challenges in profitability despite stable sales growth and operational improvements [1][2]. Revenue and Profitability - For the first three quarters of 2025, the company achieved revenue of 6.44 billion yuan, a year-on-year increase of 1.5%, while net profit attributable to shareholders was 1.02 billion yuan, down 41.2% year-on-year [1]. - In Q3 2025, the company recorded revenue of 2.32 billion yuan, up 3.9% year-on-year and 12.4% quarter-on-quarter; net profit was 340 million yuan, down 47.1% year-on-year but up 10.3% quarter-on-quarter [1][2]. Sales Performance - Q3 2025 saw tire sales of 8.441 million units, reflecting a year-on-year increase of 2.2% and a quarter-on-quarter increase of 12.7%, driven by improved operational rates at the Qingdao plant and slight capacity increases in Morocco [2]. Cost and Margin Analysis - The gross margin for Q3 2025 was 23.0%, a decrease of 3.4 percentage points quarter-on-quarter; the net margin was 14.8%, down 0.3 percentage points quarter-on-quarter, primarily due to fixed asset depreciation from the Moroccan plant and the full impact of U.S. tariffs [2]. Operational Efficiency - The company maintained stable expense ratios in Q3 2025, with sales, management, R&D, and financial expense ratios at 2.2%, 2.4%, 1.6%, and 1.4% respectively, showing minor fluctuations compared to previous periods [2]. Future Outlook - The company anticipates continued revenue growth driven by improved external factors such as declining raw material prices and increased overseas capacity, particularly in Morocco, alongside a strong order backlog and customer loyalty [2][3]. - The Moroccan plant is expected to resolve power issues by the end of November, with production ramp-up anticipated by the end of 2025 to Q1 2026, while the Qingdao plant's operational rates are also expected to improve [3]. Strategic Positioning - The company has positioned itself in the high-end market through sustained R&D investments, becoming one of the few international manufacturers of aviation tires, which enhances its brand strength and profitability [3]. - The global tariff policies present opportunities for the company, as it can leverage its strong product performance and brand reputation to support future order growth [3]. Earnings Forecast - The company revised its revenue forecasts for 2025-2027 to 8.7 billion yuan, 11.1 billion yuan, and 11.6 billion yuan, with corresponding net profits of 1.4 billion yuan, 2.2 billion yuan, and 2.7 billion yuan, reflecting a mixed growth outlook [4].

Report Industry Investment Rating - Unilateral: Neutral; Inter - period: None; Cross - variety: None [3] Core View - The second - line 450,000 - ton/year PP new device of CNOOC Ningbo Daxie Petrochemical's second - phase project has been officially put into operation, and the first - line 450,000 - ton/year is expected to be put into operation next month, with increasing supply pressure in the medium - to - long term. The number of PE parking and maintenance devices has increased, slightly alleviating the supply pressure, but the overall current operation is still at a relatively high level, with inventory accumulation in production enterprises and certain de - stocking pressure upstream. The PP operation rate has remained flat month - on - month, with a slight decline in inventory at upstream and mid - stream levels. International oil prices are showing a weak trend, oil - based production profits are acceptable, propane prices have risen slightly, and PDH - based PP profits are near the break - even point. Downstream demand is recovering slowly, with the agricultural film entering the seasonal demand conversion stage and slow follow - up of terminal orders for packaging films, plastic weaving, etc. [2] Summary by Directory 1. Polyolefin Basis Structure - Charts include the trend of the plastic futures main contract, LL East China - main contract basis, the trend of the polypropylene futures main contract, and PP East China - main contract basis [8][11] 2. Production Profits and Operation Rates - PE operation rate is 78.7% (- 5.5%), PP operation rate is 78.2% (+ 0.3%). PE oil - based production profit is 254.2 yuan/ton (- 78.3), PP oil - based production profit is - 325.8 yuan/ton (- 78.3), PDH - based PP production profit is 25.7 yuan/ton (- 62.5) [1] 3. Polyolefin Non - Standard Price Differences - Charts involve HD injection molding - LL East China, HD blow molding - LL East China, HD film - LL East China, LD East China - LL, PP low - melt co - polymer - drawn wire East China, and PP homopolymer injection molding - drawn wire East China [28][35][36] 4. Polyolefin Import and Export Profits - LL import profit is - 39.0 yuan/ton (+ 5.2), PP import profit is - 551.6 yuan/ton (+ 5.3), PP export profit is 35.9 US dollars/ton (- 0.6) [1] 5. Polyolefin Downstream Operation and Downstream Profits - PE downstream agricultural film operation rate is 14.5% (+ 0.7%), PE downstream packaging film operation rate is 49.9% (+ 0.8%), PP downstream plastic weaving operation rate is 42.0% (+ 0.6%), PP downstream BOPP film operation rate is 60.7% (- 0.5%) [1] 6. Polyolefin Inventory - The report does not provide specific inventory data, but mentions that PE production enterprises have inventory accumulation and upstream has de - stocking pressure, while PP upstream and mid - stream inventory has declined slightly [2]

Core Viewpoint - The company, operating Shenzhen Bao'an International Airport, is experiencing continuous operational improvements due to the recovery of the civil aviation industry, with significant increases in passenger and cargo throughput expected in the coming years [1][2]. Group 1: Operational Performance - In 2024, the airport will have 186 passenger routes and is expected to handle 61.477 million passengers, ranking second in domestic passenger throughput [1]. - For the first half of 2025, the airport recorded 221,000 aircraft movements, a year-on-year increase of 7.2%, and a 26.1% increase compared to the same period in 2019 [1]. - Cargo throughput reached 188.1 million tons in 2024, maintaining the top position in domestic cargo and mail throughput [1][2]. Group 2: Non-Aeronautical Business Development - The joint venture for duty-free business commenced operations in November 2023, with projected revenue of 210 million yuan and a net loss of 36 million yuan in 2024, which may temporarily impact profitability but enhance competitive strength in the long term [2]. - Advertising revenue is expected to reach 390 million yuan in 2024, reflecting a year-on-year increase of 3.3%, with operating profit of 387 million yuan [2]. - The logistics revenue is projected at 450 million yuan in 2024, with operating profit of 88 million yuan, supported by significant growth in domestic and international cargo throughput [2]. Group 3: Infrastructure Expansion and Shareholder Returns - The third runway is expected to be operational by the end of 2025, with the T2 terminal bidding completed, which will impact revenue and cost structures [3]. - The company commits to distributing at least 45% of its distributable profits as cash dividends annually, with a projected dividend payout ratio of 55.6% for 2024, up from 51.7% in 2023 [3]. Group 4: Financial Forecasts - The forecast for net profit attributable to shareholders for 2025 has been adjusted to 620 million yuan, down from the previous estimate of 740 million yuan, with new projections for 2026 and 2027 set at 770 million yuan and 920 million yuan, respectively [4]. - The company maintains a "buy" rating despite economic fluctuations and moderate recovery in non-aeronautical business [4].