Equity Research Report 8 December 2025 China Airports Equities Opportunities and challenges coexist Resilient traffic growth, but uncertainty to remain in 2026. The domestic passenger traffic of Chinese Airlines climbed 4.4% y-o-y in October vs. +2.8% y-o-y in 3Q25 (source: Civil Aviation Administration of China), partially driven by the recovery of business travel. We see strong momentum in inbound travel supported by China's visa-waiver policy – volume of inbound foreign visitor with visa-exemption surged ...

New tenancy of Shanghai Airport DFS: Shanghai Airport released the tender results of Pudong Airport and Hongqiao Airport Duty-Free Store (DFS) concessions. Per the announcement, Avolta (bidding as Dufry (Shanghai) Commercial Co) won the concession of DFS at Pudong Airport Terminal 1 and Satellite Hall 1, while CTGDF won the concession of DFS at Pudong Airport Terminal 2 and Satellite Hall 2 as well as Hongqiao Airport Terminal 1. The new rental payment will be based on fixed fee and commission (revenue shar ...

Core Insights - Shuangliu District in Chengdu has been recognized as one of "China's Happiest Districts in 2025," marking its sixth consecutive year of receiving this honor [1] Economic Development - The economic foundation of Shuangliu is robust, with Shuangliu International Airport handling 24.926 million passengers in the first three quarters of the year, reflecting a 2.4% year-on-year increase, and a cargo and mail throughput of 540,000 tons, which is a 17.9% year-on-year growth [2] - The district is transitioning its aviation economy from a "transport hub" to a "smart manufacturing hub," creating a complete industrial cluster that includes aviation R&D, manufacturing, maintenance, operations, and asset management [3] Infrastructure and Community Development - Shuangliu has developed a '15-minute community life circle' to enhance the quality of life for its residents, ensuring that essential services and amenities are easily accessible [5] - The Guanglinfang Qinghe Community Complex spans approximately 45,600 square meters, providing a one-stop solution for residents' daily needs, including dining, clothing, housing, transportation, and entertainment [6] Cultural and Recreational Enhancements - Traditional food streets, such as the renovated Banqiao Street area, are revitalizing the local culture and becoming popular destinations for residents and visitors [7] - The district has constructed 210 kilometers of greenways and 22 pocket parks, achieving a green coverage of 49.06% and providing 15.6 square meters of parkland per capita [8] Quality of Life - The integration of greenery into urban life is a priority, with residents enjoying easy access to parks and green spaces, enhancing their daily experiences [8] - The harmonious coexistence of the aviation economy and tranquil parks contributes to the overall happiness of Shuangliu's residents [10]

Core Insights - Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) has completed the acquisition of URW Airports, LLC for an enterprise value of $295 million, enhancing its presence in the U.S. airport retail sector [1][2][3] Company Overview - ASUR operates 16 airports across the Americas, including nine in southeast Mexico and six in northern Colombia, with a focus on maintaining and developing airport infrastructure [3][5] - The company is also a 60% joint venture partner in Aerostar Airport Holdings, LLC, which operates Luis Muñoz Marín International Airport in Puerto Rico [5] Acquisition Details - The acquisition involves ASUR US Commercial Airports, LLC acquiring all equity interests of URW Airports, LLC from Unibail-Rodamco-Westfield's subsidiary [2] - The newly acquired entity will be rebranded as ASUR Airports, LLC, which will manage commercial programs at major U.S. airport terminals [2][4] Strategic Expansion - This acquisition represents a strategic move for ASUR to expand its U.S. airport retail concessions operations, thereby enhancing its commercial capabilities and footprint in the market [3][6] - ASUR Airports will manage key terminals at Los Angeles International Airport, Chicago O'Hare International Airport, and John F. Kennedy International Airport, focusing on delivering elevated travel experiences [4][6]

Core Viewpoint - Grupo Aeroportuario del Pacífico (GAP) has received shareholder approval for the business combination with Cross Border Xpress (CBX), which includes technical assistance and technology transfer services, marking a significant step in the company's development strategy [1][3]. Company Overview - GAP operates 12 airports in Mexico's Pacific region, including major cities like Guadalajara and Tijuana, as well as tourist destinations such as Puerto Vallarta and Los Cabos [4]. - The company was listed on the New York Stock Exchange in February 2006 and on the Mexican Stock Exchange in the same year [4]. - GAP has expanded its operations internationally, acquiring a majority stake in MBJ Airports Limited in Jamaica and entering into a concession agreement for the Norman Manley International Airport [4]. Shareholder Meeting Outcomes - During the Ordinary and Extraordinary General Shareholders' Meeting, 96% of the votes cast approved the merger, with a quorum of 88.1% of shareholders present [1]. - The merger will involve the issuance of approximately 90 million net new shares, increasing the total outstanding shares from approximately 505 million to about 595 million [2]. Governance and Transparency - The company emphasized adherence to high international standards of corporate governance throughout the proposal process, ensuring that the transaction was supported by the "majority of the minority" shareholders [3]. - An information statement regarding the transaction was provided to shareholders well in advance of legal requirements, promoting transparency in the decision-making process [3].

Core Points - Copenhagen Airports A/S has received a notice from the Kingdom of Denmark via the Ministry of Finance regarding the preliminary result of the mandatory tender offer to its shareholders [1] Group 1 - The notice informs shareholders about the preliminary results of the mandatory tender offer [1]

A group led by Corporacion América Airports won a tender to operate a newly built $3 billion international airport in Angola’s capital https://t.co/gCLODCguoI ...

Core Insights - Chongqing Jiangbei International Airport has achieved a record annual cargo throughput of over 500,000 tons as of December 9, marking a significant milestone in the development of the Chongqing international aviation hub [1][8] Group 1: Cargo Operations - The airport currently operates 20 international (regional) cargo routes, with a focus on Europe and Southeast Asia, having added 9 new routes this year [4] - Weekly flights on these routes total 66, establishing a robust air logistics network connecting Europe and Southeast Asia [4] - The airport has seen a 31% increase in cross-border e-commerce cargo and a 78% increase in international transshipment cargo this year [4] Group 2: Growth Metrics - As of November, cross-border e-commerce cargo at the airport reached 21,000 tons, reflecting a year-on-year growth of 31% [4] - The airport has also facilitated the import of specialty products such as Nordic salmon and Southeast Asian durians, leveraging its comprehensive regulatory facilities [4] - The international air-to-air transshipment volume reached 8,840 tons by November 2025, representing a 78% increase compared to the previous year [7] Group 3: Future Plans - The airport aims to further enhance its cargo route network, particularly towards Europe, to establish Chongqing as a central hub for fresh and imported fruits in the western region [4][8] - Ongoing efforts will focus on improving cargo source acquisition and enhancing hub capabilities to support the region's economic development [8]

Core Insights - Grupo Aeroportuario del Sureste (ASUR) reported a total passenger traffic of 5.9 million in November 2025, marking a year-over-year increase of 1.5% compared to November 2024 [1][2][4] Passenger Traffic Summary - Passenger traffic in Colombia increased by 5.9%, driven by an 8.7% rise in international traffic and a 5.1% increase in domestic traffic [2][4] - In Mexico, passenger traffic grew by 1.0%, with international traffic up by 2.1% while domestic traffic saw a slight decline of 0.1% [2][4] - Puerto Rico experienced a decrease in total passenger traffic by 2.9%, despite a 5.1% increase in international traffic, which was offset by a 4.0% decline in domestic traffic [2][4] Year-to-Date Performance - Year-to-date figures for Mexico show a total of 36.8 million passengers, reflecting a decline of 2.1% compared to the previous year [4] - Colombia's year-to-date passenger traffic reached 15.6 million, representing a growth of 3.8% [4] - San Juan, Puerto Rico, reported a year-to-date total of 12.4 million passengers, an increase of 3.8% [4] Traffic Breakdown by Region - In Mexico, domestic traffic totaled approximately 3.67 million in November 2025, while international traffic was about 1.72 million [4][5] - Colombia's domestic traffic was around 1.16 million, with international traffic at approximately 333,000 [4][5] - San Juan's domestic traffic was about 871,000, and international traffic reached approximately 138,000 [4][5] Company Overview - ASUR operates 16 airports across the Americas, including nine in southeast Mexico and six in northern Colombia, with a significant presence in tourist destinations [6] - The company is also a 60% joint venture partner in Aerostar Airport Holdings, which operates Luis Muñoz Marín International Airport in San Juan, Puerto Rico [6]

Core Viewpoint - The article discusses the significant transformation occurring in the Greater Bay Area's airport infrastructure, highlighting the expansion and modernization of major airports to enhance their global competitiveness and support regional economic growth [5][21]. Infrastructure Developments - Hong Kong International Airport has fully operationalized its third runway system and is progressively opening its expanded second passenger terminal, with the departure hall expected to be operational by 2026 [2][12]. - Guangzhou Baiyun International Airport's T3 terminal and fifth runway have commenced operations, making it the first airport in China with five commercial runways [2][3]. - Shenzhen Bao'an International Airport has officially launched its third runway, enhancing operational efficiency and capacity to accommodate large aircraft [10]. Capacity and Demand Response - The expansion of the Greater Bay Area airport cluster is a direct response to the increasing demand for air travel, with projections indicating that the total passenger throughput for the seven airports in the region will exceed 200 million by 2024 [14][15]. - The airports in Guangzhou, Shenzhen, and Hong Kong have all reported over 8% growth in passenger throughput in the first three quarters of the year [15]. Economic Impact - The airport expansions are expected to significantly boost the regional economy, with the Greater Bay Area's economic output projected to surpass 14.79 trillion yuan in 2024, contributing to nearly one-fifth of the national foreign trade [15]. - The enhanced airport infrastructure will facilitate a shift from broad coverage to high-density, high-quality air route networks, supporting the region's logistics and trade needs [15][19]. Strategic Importance - The development of the airport cluster is crucial for strengthening the competitive advantage of the Greater Bay Area's real economy, particularly in high-value industries such as electronics, biomedicine, and cross-border e-commerce [17][18]. - Upgraded airport facilities will improve cargo transport capabilities, essential for maintaining supply chain resilience and supporting the region's manufacturing and global trade ambitions [19]. Connectivity and Integration - The article emphasizes the importance of creating a seamless transportation network, with plans for integrated air-rail transport systems to enhance connectivity among the airports in the Greater Bay Area [26]. - The collaborative development of the airport cluster aims to transition from competition to cooperation, ensuring that each airport can leverage its unique strengths to form a complementary network [27][29]. Future Outlook - The ongoing enhancements in both hardware and software aspects of the airport cluster are expected to significantly elevate the Greater Bay Area's global resource allocation capabilities, positioning it as a key node in international supply chains and innovation networks [30].