Group 1 - The core viewpoint is that the Consumer Price Index (CPI) is expected to improve, showing a mild recovery from low levels [1] - A series of incremental and stock policies are expected to work synergistically, particularly the gradual implementation of policies to address "involution" competition, which will promote continuous improvement in supply and demand structure [1] - The potential for service consumption is increasingly evident, which will contribute to price increases in sectors such as catering, accommodation, domestic services, elderly care, cultural tourism, and health services [1]

Core Viewpoint - China Eastern Airlines reported a net loss of 4.226 billion yuan for 2024, a year-on-year reduction in losses by 48.4%, aligning with the lower end of its earnings forecast [1] Financial Performance - Total operating revenue for 2024 reached 132.12 billion yuan, representing a year-on-year growth of 16.11%, with passenger revenue increasing by 16.2% and cargo revenue by 46.7% [3] - The company recorded a net loss attributable to shareholders of 4.798 billion yuan, a year-on-year reduction in losses by 44.44% [1] - The unit cost of ASK (Available Seat Kilometers) was 0.42 yuan, a decrease of 7% year-on-year, while the unit cost excluding fuel decreased by 6% [3] Operational Data - Overall ASK increased by 9.9% compared to 2019 and by 21.2% compared to 2023, while overall RPK (Revenue Passenger Kilometers) rose by 11.0% compared to 2019 and by 34.9% compared to 2023 [1] - Domestic ASK recovered to 117.9% of the 2019 level, with domestic RPK at 119.1% of 2019, and domestic passenger volume at 109.9% of 2019 [1] - International ASK reached 95.3% of the 2019 level, with international RPK at 95.8% of 2019, and international passenger volume at 97.8% of 2019 [1] Fleet and Aircraft Delivery - In 2024, the company delivered 35 aircraft and retired 13, resulting in a fleet size of 804 aircraft, a year-on-year increase of 2.8% [2] - The company plans to net add 34, 51, and 28 aircraft in 2025, 2026, and 2027, respectively, indicating future fleet growth rates of 4.2%, 6.1%, and 3.1% [2] Investment Analysis - Due to stable market demand and declining ticket prices, the 2025 domestic passenger kilometer revenue growth assumption has been adjusted to 1% from the original 3% [4] - The earnings forecast for 2025 and 2026 has been revised down to 2.935 billion yuan and 5.735 billion yuan, respectively, with a new estimate for 2027 at 8.895 billion yuan [4] - The current market valuation corresponds to a 2027 earnings forecast PE of 9X, which remains below the historical valuation average of the three major airlines, maintaining an "overweight" rating [4]