Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a slight decline in performance, with Q1 2025 revenue at 5.72 billion yuan, a year-on-year increase of 0.05%, while net profit attributable to shareholders was 350 million yuan, down 7.9% year-on-year [2][6]. - The company faced pressure on revenue due to a high base from the previous year, with a 4.7% year-on-year decline in unit revenue, although the decline was less than that of comparable companies in the industry, indicating resilient demand [11]. - Financial expenses have been reduced, and other income has supported profitability, with a 73 million yuan increase in other income year-on-year in Q1 2025 [11]. Summary by Relevant Sections Financial Performance - In Q1 2025, the company achieved an ASK growth of 6.7% and an RPK growth of 5.0%, with a passenger load factor of 84.1%, down 1.4 percentage points year-on-year [11]. - The company recorded a non-oil cost increase of 3.1% due to engine maintenance and aircraft downtime, which affected profitability [11]. Financial Outlook - The company is expected to see a gradual improvement in profitability due to ongoing operational enhancements and cash flow improvements, with projected net profits of 1.651 billion, 2.295 billion, and 2.788 billion yuan for 2025, 2026, and 2027 respectively [11]. - The current market valuation reflects a PE ratio of 16.52, 11.88, and 9.78 for the years 2025, 2026, and 2027, indicating attractive investment value [11].

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a total revenue of 22.09 billion yuan for 2024, an increase of 9.95% year-on-year, and a net profit attributable to shareholders of 914 million yuan, up 17.52% year-on-year. In Q4 2024, the company achieved a revenue of 4.6 billion yuan, a year-on-year increase of 9.2%, with a net profit of -360 million yuan, reducing losses by 19 million yuan year-on-year [5][6]. Financial Performance Summary - In Q4 2024, the company experienced a 15.4% year-on-year increase in Available Seat Kilometers (ASK) and a 16.2% increase in Revenue Passenger Kilometers (RPK), with a load factor of 83.6%, up 0.6 percentage points year-on-year [13]. - The unit revenue decreased by 6.0% year-on-year due to significant capacity increases in the industry, but the revenue still grew [13]. - The company recorded a unit non-fuel cost of 0.226 yuan/ASK in Q4 2024, a decrease of 12.5% compared to Q4 2019 and a decrease of 1.5% compared to Q4 2023, primarily due to an agreement with Pratt & Whitney regarding engine compensation [13]. - The company benefited from a significant drop in fuel prices, with a year-on-year decrease of 24.2%, leading to a fuel cost of 1.485 billion yuan in Q4 2024, a 22.9% decrease year-on-year [13]. - The gross profit for Q4 2024 was 50 million yuan, an increase of 50 million yuan compared to Q4 2019, indicating a significant improvement in core profitability [13]. - Financial expenses were reduced to 290 million yuan in Q4 2024, a decrease of 70 million yuan year-on-year, as the company improved cash flow and reduced debt exposure [13]. - The company expects to achieve net profits of 1.651 billion yuan, 2.285 billion yuan, and 2.778 billion yuan for the years 2025 to 2027, respectively, with corresponding price-to-earnings ratios of 16.85, 12.17, and 10.02 times, indicating strong investment value [13].