Core Viewpoint - China International Airlines Co., Ltd. (China National Airlines) is set to issue A-shares to its controlling shareholder, China Aviation Group, to raise up to 20 billion yuan for debt repayment and working capital, reflecting strong confidence in the company's future amid the recovery of the civil aviation industry [1][2]. Financial Performance - For the first three quarters of 2025, China National Airlines reported operating revenue of 129.826 billion yuan, a year-on-year increase of 1.31% [2]. - The net profit attributable to shareholders reached 1.870 billion yuan, marking a significant year-on-year growth of 37.31%, indicating improved profitability [2]. - The recovery in domestic air passenger traffic and steady revival of international routes contributed to this performance, with the civil aviation sector surpassing pre-pandemic levels in various metrics [2]. Strategic Initiatives - The A-share issuance is part of a strategic move to optimize the company's capital structure, reduce financial costs, and enhance risk resilience, as the current debt-to-asset ratio stands at 87.88% [2]. - The company aims to build a globally competitive world-class airline group, supporting national strategies and initiatives such as the "Belt and Road" [3][4]. - The full subscription of the new shares by the controlling shareholder is seen as a strong endorsement of the company's operational achievements and long-term strategic direction [3]. Market Outlook - Analysts predict that the aviation industry is poised for a new growth cycle, driven by increasing travel demand and the recovery of international routes [3]. - The support from the controlling shareholder is expected to enhance market competitiveness and instill confidence among investors, potentially leading to a rebound in company valuation [3][4].

Core Viewpoint - China National Airlines (601111.SH) plans to issue A-shares to its controlling shareholder, China Aviation Group, to raise up to RMB 20 billion for debt repayment and working capital, reflecting confidence in the company's future amid the aviation industry's recovery [2][4]. Group 1: Financial Performance - For the first nine months of 2025, China National Airlines reported revenue of RMB 129.83 billion, a year-on-year increase of 1.31% [3]. - The net profit attributable to shareholders reached RMB 1.87 billion, showing a significant year-on-year growth of 37.31%, indicating improved profitability [3]. Group 2: Capital Strengthening - The planned A-share issuance will be fully subscribed by China Aviation Group and its subsidiary, China Aviation Capital, through cash payments [4]. - The funds raised will be used entirely for debt repayment and enhancing working capital, which will help optimize the company's capital structure and reduce financial costs [4]. Group 3: Strategic Development - China National Airlines aims to build a globally competitive world-class airline group, focusing on resource optimization and hub network development while supporting domestic aircraft manufacturing and the Belt and Road Initiative [5]. - The full subscription of the new shares by the controlling shareholder signifies recognition of the company's current performance and long-term strategic support [5]. Group 4: Industry Outlook - The aviation industry is expected to enter a new growth cycle as domestic travel demand continues to rise and international routes recover [7]. - The support from the controlling shareholder is anticipated to enhance market competitiveness and position the company favorably in the recovering industry [7].