Core Viewpoint - The report from CICC maintains the profit forecast for China Civil Aviation Information Network (00696) at 2.327 billion yuan for 2025 and 2.581 billion yuan for 2026, with a target price of 13 HKD, indicating a potential upside of 10.2% from the current stock price [1]. Group 1: Financial Performance - In 1H25, the company's revenue was 3.895 billion yuan, a year-on-year decline of 3.6%, while the net profit attributable to the parent company was 1.448 billion yuan, a year-on-year increase of 5.9%, aligning with market expectations [1]. - The company's AIT business revenue grew by 2.1% year-on-year, with total bookings increasing by 5.3%. However, the processing volume for foreign and regional airlines decreased by 7.8% [2]. - Operating costs decreased by 4.2% year-on-year, primarily due to a 17.6% decline in depreciation costs and a 52.1% drop in sales costs for integration business [3]. Group 2: Business Segments - The system integration business saw a significant revenue decline of 38.5%, negatively impacting overall revenue growth due to project construction progress [2]. - The settlement business, data network, and technical support revenues grew by 12.4%, declined by 12.4%, and increased by 30.4% respectively in 1H25 [2]. Group 3: Investment Opportunities - The company holds a 20.66% stake in China Aviation Information Technology Co., Ltd., which operates the "Travel Companion" app. The app recently launched a "Civil Aviation Official Direct Sales Platform" feature, allowing users to compare and purchase tickets from multiple airlines without agent fees [4]. - It is recommended to monitor the user activity changes of the "Travel Companion" app and its potential impact on commercialization [4].