Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported significant improvement in profitability, with other income achieving high growth. For the first half of 2025, the company achieved operating revenue of 11.07 billion yuan, a year-on-year increase of 1.02%, and a net profit attributable to shareholders of 510 million yuan, a year-on-year increase of 3.3%. In Q2 2025, the company achieved operating revenue of 5.34 billion yuan, a year-on-year increase of 2.1%, and a net profit of 160 million yuan, a year-on-year increase of 35.6% [2][4]. Summary by Sections Financial Performance - In Q2 2025, the company saw a significant narrowing of revenue decline compared to Q1 2025, with ASK increasing by 1.7% and RPK increasing by 5.1%. The passenger load factor improved to 86.3%, an increase of 2.8 percentage points year-on-year. The unit revenue decline was only 2.9%, indicating a gradual recovery in demand [6]. - The company recorded a financial expense of 280 million yuan in Q2 2025, a decrease of 60 million yuan year-on-year. The company's exposure to US debt decreased from 1.442 billion USD at the end of 2023 to 758 million USD in the mid-2025 report, significantly reducing exchange rate sensitivity [6]. Investment Recommendations - The company is considered an undervalued excellent private enterprise with gradually releasing profit elasticity. Key factors include a high proportion of high-yield routes, superior operational management capabilities, and an increase in wide-body aircraft capacity utilization. The company is expected to achieve net profits of 1.25 billion, 2.02 billion, and 2.40 billion yuan from 2025 to 2027, corresponding to a current market PE of 21.9, 13.6, and 11.4 times, indicating strong cost-effectiveness for investment [6].