Core Viewpoint - The performance of companies listed on the Shanghai Stock Exchange has shown positive growth in both year-on-year and quarter-on-quarter metrics, driven by effective macroeconomic policies and a resilient business environment [1][2]. Financial Performance - In the first three quarters of 2025, listed companies in Shanghai achieved a total operating revenue of 37.58 trillion yuan, a slight year-on-year increase. Net profit reached 3.79 trillion yuan, up 4.5% year-on-year, while the net profit after deducting non-recurring items was 3.65 trillion yuan, growing by 5.5% [3]. - In Q3 alone, net profit and net profit after deducting non-recurring items increased by 11.4% and 14.6% year-on-year, respectively, with quarter-on-quarter growth of 16.9% and 19.2% [3]. - A total of 501 companies announced dividend plans, with cash dividends exceeding 600 billion yuan, marking a 3.3% increase year-on-year [3]. Sector Performance - The Science and Technology Innovation Board (STAR Market) reported that 588 companies achieved a combined operating revenue of 1.01 trillion yuan, a 6.6% year-on-year increase, with a median R&D intensity of 12.4% [3]. - Private enterprises saw operating revenue and net profit grow by 4.5% and 10.0% year-on-year, respectively, with significant quarterly increases in net profit growth rates [4]. Innovation and Technology - High-tech industries have become a crucial driver of growth, with R&D investments in high-tech manufacturing services reaching 229.6 billion yuan, a 9% increase. This led to a 10% increase in operating revenue and a 19% increase in net profit [6]. - The semiconductor industry, driven by AI, saw net profits grow by 82% for chip design and 25% for semiconductor equipment [6]. Market Demand and Trends - The travel and tourism sectors experienced a resurgence, with airline and airport revenues increasing by 21% quarter-on-quarter, and hotel revenues rising by 10% [7]. - The steel industry reported a remarkable 550% year-on-year increase in net profit, attributed to structural adjustments and stable production [7]. Foreign Trade Resilience - Shanghai's foreign trade companies demonstrated resilience, with cargo throughput at major ports increasing by 5% year-on-year, and container throughput rising by 8% [9]. - The export of new energy vehicles surged by 71% year-on-year, highlighting the strength of the automotive sector [9].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 15% compared to the benchmark index within the next 6 to 12 months [6][9]. Core Insights - The company reported a net profit attributable to shareholders of 620 million yuan for the first three quarters of 2025, a year-on-year increase of 102%. The net profit for Q3 alone was 369 million yuan, up 32% from the previous year [6]. - The company has increased its fleet by 5 aircraft, bringing the total to 80 by the end of September 2025, with 61% being regional aircraft [6]. - The company experienced a 19.27% increase in available seat kilometers (ASK) and a 24.23% increase in revenue passenger kilometers (RPK) year-on-year for the first three quarters of 2025 [6]. - The unit cost continued to decline due to lower fuel prices and operational recovery, with Q3 unit ASK revenue at 0.4545 yuan, down 5.3% year-on-year, while unit ASK operating costs decreased by 8.2% to 0.3921 yuan [6]. Financial Forecasts and Valuation - The company’s revenue is projected to grow from 6.696 billion yuan in 2024 to 9.649 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 12% [3]. - The net profit attributable to shareholders is expected to rise from 613 million yuan in 2025 to 1.142 billion yuan in 2027, reflecting a significant growth trajectory [3]. - The price-to-earnings (P/E) ratio is forecasted to decrease from 22.5x in 2025 to 12.1x in 2027, indicating improving valuation metrics as earnings grow [3]. Company Overview - The total share capital of the company is approximately 1,278.24 million shares, with a market price of 10.80 yuan, resulting in a market capitalization of approximately 13.805 billion yuan [4].

Core Points - The aviation and airport sector experienced a decline of 1.49% on October 31, with China National Aviation leading the drop [1] - The Shanghai Composite Index closed at 3954.79, down 0.81%, while the Shenzhen Component Index closed at 13378.21, down 1.14% [1] Stock Performance - Shanghai Airport (600009) closed at 32.29, up 1.96% with a trading volume of 224,200 shares and a transaction value of 721 million yuan [1] - Xiamen Airport (600897) closed at 16.93, up 1.87% with a trading volume of 160,700 shares and a transaction value of 270 million yuan [1] - China National Aviation (601111) closed at 7.86, down 8.07% with a trading volume of 2,508,400 shares and a transaction value of 1.99 billion yuan [2] Capital Flow - The aviation and airport sector saw a net outflow of 597 million yuan from institutional investors, while retail investors had a net inflow of 428 million yuan [2] - The sector's overall capital flow indicates a mixed sentiment, with institutional investors pulling back while retail investors showed interest [2][3] Individual Stock Capital Flow - Shanghai Airport had a net inflow of 93.21 million yuan from institutional investors, while retail investors had a net outflow of 47.50 million yuan [3] - China Eastern Airlines (600115) experienced a significant net outflow of 134 million yuan from institutional investors, but retail investors had a net inflow of 104.10 million yuan [3] - Hainan Airlines (600221) saw a net outflow of 49.20 million yuan from institutional investors, while retail investors had a net inflow of 69.91 million yuan [3]

Core Insights - The aviation and airport sector experienced a slight decline of 0.01% on October 30, with Xiamen Airport leading the drop [1] - The Shanghai Composite Index closed at 3986.9, down 0.73%, while the Shenzhen Component Index closed at 13532.13, down 1.16% [1] Stock Performance - Xiamen Airport (600897) closed at 16.62, down 2.35% with a trading volume of 186,900 shares and a transaction value of 312 million yuan [2] - Other notable stocks include: - Spring Airlines (601021) at 53.35, up 0.87% [1] - China Eastern Airlines (600115) at 4.81, unchanged [2] - China Southern Airlines (600029) at 6.79, up 0.44% [2] Capital Flow - The aviation and airport sector saw a net outflow of 297 million yuan from institutional investors, while retail investors contributed a net inflow of 183 million yuan [2] - The capital flow for individual stocks includes: - Xiamen Airport with a net outflow of 21.42 million yuan from institutional investors [3] - China Southern Airlines with a net inflow of 21.88 million yuan from retail investors [3] - China National Aviation (601111) with a net outflow of 12.95 million yuan from institutional investors [3]

Market Overview - The aviation and airport sector increased by 0.71% on October 29, with HNA Holding leading the gains [1] - The Shanghai Composite Index closed at 4016.33, up 0.7%, while the Shenzhen Component Index closed at 13691.38, up 1.95% [1] Stock Performance - HNA Holding (600221) closed at 1.75, up 3.55% with a trading volume of 8.84 million shares [1] - Xiamen Airport (600897) saw a decline of 3.30%, closing at 17.02 with a trading volume of 326,800 shares [2] - China Eastern Airlines (600115) decreased by 0.62%, closing at 4.81 with a trading volume of 1.0752 million shares [2] Capital Flow - The aviation and airport sector experienced a net inflow of 134 million yuan from institutional investors, while retail investors saw a net outflow of 26.71 million yuan [2] - HNA Holding had a net inflow of 195 million yuan from institutional investors, but a net outflow of 108 million yuan from retail investors [3] Individual Stock Analysis - China Southern Airlines (600029) had a net outflow of 8.09 million yuan from institutional investors, but a net inflow of 19.41 million yuan from retail investors [3] - Spring Airlines (601021) experienced a net outflow of 2.76 million yuan from institutional investors, while retail investors contributed a net inflow of 16.35 million yuan [3]

Investment Rating - The report initiates coverage with a rating of "Buy" for China Eastern Airlines [1][6]. Core Insights - China Eastern Airlines is one of the three major state-owned airlines in China, benefiting from dual core hubs in Beijing and Shanghai. The company is positioned to capitalize on the recovering tourism market, which is expected to drive air travel demand. The report highlights a trend of decreasing growth in the civil aviation fleet size in China, influenced by global supply chain disruptions affecting aircraft manufacturers [1][4][9]. - The average price of aviation kerosene has decreased compared to the previous year, which is anticipated to enhance the company's profitability [4][9]. - The projected revenue for China Eastern Airlines from 2025 to 2027 is estimated at RMB 143.18 billion, RMB 152.11 billion, and RMB 159.50 billion, respectively, with year-on-year growth rates of 8.4%, 6.2%, and 4.9% [6][8]. Summary by Sections Company Overview - China Eastern Airlines, established on June 25, 1988, is a leading state-owned airline in China, with a significant presence in the aviation market. The company operates a modern fleet of 816 aircraft, making it one of the youngest fleets globally [17][23]. - The airline's main business is passenger and cargo transportation, with passenger services accounting for over 90% of total revenue in normal circumstances [24][9]. Financial Performance - In 2024, the total revenue reached RMB 132.12 billion, marking a 16.11% increase year-on-year, and the highest revenue in nearly a decade. The company has shown a recovery trend post-COVID-19, with significant revenue growth in 2023 and 2024 [38][45]. - The net profit attributable to shareholders is projected to be RMB 1.405 billion, RMB 4.528 billion, and RMB 7.055 billion for 2025, 2026, and 2027, respectively [6][8]. Market Dynamics - The Chinese aviation market has seen a 172.8% increase in passenger transport volume over the past 15 years, with a growing trend towards market-based pricing for airfares [53][54]. - The three major airlines (Air China, China Eastern Airlines, and China Southern Airlines) accounted for 62.64% of the total transport turnover in 2024, indicating a consolidated market structure [55][56]. Operational Metrics - In 2024, the available seat kilometers (ASK) were 296.91 billion, reflecting a 21.20% year-on-year increase, while revenue passenger kilometers (RPK) reached 245.89 billion, up 34.89% year-on-year, resulting in a passenger load factor of 82.76% [28][36]. - The cargo segment has shown fluctuations, with available cargo ton kilometers at 9.51 billion and cargo turnover at 3.68 billion in 2024, indicating a recovery in cargo operations [36][40].

Group 1 - The Shanghai Composite Index surpassed the 4000-point mark for the first time since August 2015, reaching a ten-year high on October 28, 2025 [2] - Sectors such as shipbuilding, aviation, automotive services, computer equipment, and aerospace showed significant gains, with nearly 3000 stocks in the market rising [2] Group 2 - According to a report by AVIC Securities, some institutions have achieved substantial profits this year and may prefer a more conservative approach in the fourth quarter [3] - The upcoming APEC summit at the end of October is expected to yield progress in trade issues between China and the U.S., alleviating market concerns [3] - The Federal Reserve is anticipated to lower interest rates by 25 basis points at the end of October, while November will see the A-share market entering a performance vacuum period [3] - The "14th Five-Year Plan" outline is expected to provide new market hotspots, suggesting that the A-share market may resume a trend of fluctuating upward movement [3]

Core Insights - The aviation and airport sector saw a rise of 0.61% on October 28, with Xiamen Airport leading the gains [1] - The Shanghai Composite Index closed at 3988.22, down 0.22%, while the Shenzhen Component Index closed at 13430.1, down 0.44% [1] Stock Performance - Xiamen Airport (600897) closed at 17.60, up 10.00% with a trading volume of 132,700 shares and a transaction value of 229 million yuan [1] - Southern Airlines (600029) closed at 6.70, up 1.52% with a trading volume of 927,600 shares and a transaction value of 626 million yuan [1] - Other notable performances include: - Hainan Airlines (600221) up 0.60% to 1.69 [1] - China Eastern Airlines (600115) up 0.21% to 4.84 [1] Capital Flow - The aviation and airport sector experienced a net inflow of 22.1 million yuan from institutional investors, while retail investors saw a net inflow of 42.8 million yuan [2] - However, speculative funds recorded a net outflow of 64.9 million yuan [2] Individual Stock Capital Flow - Xiamen Airport had a net inflow of 45.72 million yuan from institutional investors, but a net outflow of 20.31 million yuan from speculative funds [3] - Shenzhen Airport saw a net inflow of 16.57 million yuan from institutional investors, with a net outflow of 5.96 million yuan from speculative funds [3] - China Eastern Airlines experienced a net outflow of 9.82 million yuan from institutional investors, while retail investors contributed a net inflow of 5.52 million yuan [3]

Market Overview - The three major A-share indices experienced a slight decline today, with the Shanghai Composite Index losing the 4000-point mark [1] - As of the market close, the Shanghai Composite Index fell by 0.22% to 3988.22 points, the Shenzhen Component Index decreased by 0.44% to 13430.10 points, and the ChiNext Index dropped by 0.15% to 3229.58 points [1] - The total trading volume in the Shanghai and Shenzhen markets reached 21,479 billion, a decrease of 1,923 billion from the previous day [1] Sector Performance - Industry sectors showed mixed results, with the shipbuilding sector experiencing significant gains [1] - The shipping and port, automotive services, aerospace, railway and highway, and airport sectors had the highest increases [1] - Conversely, sectors such as precious metals, energy metals, wind power equipment, steel, non-ferrous metals, and beauty care faced the largest declines [1] Stock Performance - Approximately 2,400 stocks rose, with over 70 stocks hitting the daily limit [1] - The Fujian sector saw a surge in limit-up stocks, including Luqiao Information with a 30% increase and Haixia Innovation with a 20% increase [1] - More than ten stocks, including Fujian Cement, Zhangzhou Development, Pingtan Development, Xiamen Airport, and Xiamen Port, also reached their daily limit [1]

Investment Rating - The report maintains a "Recommended" rating for the transportation industry [4][10][12]. Core Views - The transportation sector is experiencing a recovery in passenger and freight volumes, driven by the resumption of domestic and international travel, as well as a rebound in logistics demand [8][12]. - The report highlights the positive impact of government policies aimed at stimulating domestic demand, which is expected to further enhance the performance of airlines and logistics companies [12][9]. Summary by Sections Industry Performance Review - From October 20 to October 25, 2025, the transportation sector recorded a cumulative increase of +0.72%, ranking 24th among 31 SW primary industries, while the CSI 300 index rose by +3.24% [16][18]. - Sub-sectors within transportation showed varied performance, with public transport (+4.81%) and warehousing logistics (+2.88%) leading the gains, while shipping experienced a decline of -1.28% [18][19]. Aviation and Airports - In September 2025, major listed airlines in China showed significant recovery in domestic Available Seat Kilometers (ASK) compared to 2019, with China Southern Airlines at 116.42% and Spring Airlines at 176.49% [27]. - Major airports also reported recovery in passenger throughput, with Baiyun Airport and Shanghai Airport achieving recovery rates of 115.74% and 125.22% for domestic passengers, respectively [35]. Shipping and Ports - As of October 24, 2025, the Shanghai Containerized Freight Index (SCFI) was at 1403.46 points, reflecting a week-on-week increase of +7.11% but a year-on-year decrease of -35.78% [39]. - The China Containerized Freight Index (CCFI) reported a value of 992.74 points, with a week-on-week increase of +2.02% and a year-on-year decrease of -27.35% [39]. Road and Rail - In September 2025, railway passenger volume reached 341 million, showing a slight year-on-year decrease of -0.24%, while freight volume increased by +4.24% to 4.45 million tons [64]. - Road transport saw a significant decline in passenger volume, down -43.82% year-on-year, while freight volume increased by +5.20% to 38.91 million tons [70]. Express Delivery - The express delivery sector achieved a revenue of 127.37 billion yuan in September 2025, marking a year-on-year increase of +7.20%, with business volume rising by +12.70% to 16.88 billion parcels [12].