Group 1 - Cathay Pacific maintains "buy" rating for Air China (601111) (00753), expecting the company to turn profitable in Q2 2025, with potential for upward profit momentum in the next two years if commercial demand recovers sustainably [1][2] - The company reported a net loss of 1.8 billion yuan in the first half of the year, a reduction of nearly 1 billion yuan year-on-year, with Q2 showing a profit of 238 million yuan due to recovering commercial demand and reduced fuel costs [2] - The company plans to raise 16 billion yuan through equity financing, maintaining its controlling stake in Shenzhen Airlines, which will help alleviate debt burdens and improve profitability [3] Group 2 - Air China's network and customer base have significantly improved, with the company poised for an upward shift in profit margins as commercial demand stabilizes [4] - The airline's strategic decision to retain operations at the capital airport has further optimized its customer base, enhancing its competitive edge in the market [4] - The overall aviation market is entering a low growth phase, and with the recovery of commercial demand, Air China is expected to see a substantial increase in profitability [4]

Group 1 - Cathay Pacific maintains a "buy" rating, expecting a turnaround in profitability by Q2 2025, with potential for upward movement in profit margins if commercial demand recovers sustainably [1] - In the first half of the year, the company reported a net loss of 1.8 billion yuan, a reduction of nearly 1 billion yuan year-on-year, with Q2 showing a profit of 238 million yuan due to recovering commercial demand [1] - The company anticipates significant profitability in Q3 despite a temporary decline in ticket prices, with expectations of continued strong performance in Q4 driven by holiday travel demand [1] Group 2 - Shenzhen Airlines plans to raise 16 billion yuan through equity financing while maintaining its controlling stake, with the first phase involving a cash increase of 2.082 billion yuan [2] - The financing is expected to alleviate debt burdens and lower capital costs, aiding in the recovery of profitability for Shenzhen Airlines [2] - The strategic significance of maintaining control over Shenzhen Airlines is highlighted, as it supports the company's high-quality network [2] Group 3 - The airline's network and customer base have significantly improved, with a potential increase in profitability as commercial demand stabilizes [3] - Cathay Pacific has strategically positioned itself by retaining operations at the capital airport, enhancing its network quality and profitability potential [3] - The market for civil aviation ticket prices has become largely market-driven, indicating a shift towards a low-growth supply environment [3]