Group 1 - The company achieved a revenue of 2.755 billion yuan in the first half of 2025, representing a year-on-year growth of 2.6%, with aviation revenue at 1.345 billion yuan, up 4.6%, and non-aviation revenue at 1.410 billion yuan, up 0.8% [1] - The company's net loss after tax was 164 million yuan, a significant reduction from a loss of 376 million yuan in the same period last year [1] - Passenger throughput reached 34.17 million, a year-on-year increase of 4.5%, with international passenger throughput growing by 21.3%, increasing its share from 17.4% to 20.2% [1] Group 2 - Non-aviation revenue was 1.410 billion yuan, with a slight year-on-year increase of 0.8%, while franchise income decreased by 4.5% to 749 million yuan [2] - Advertising revenue fell by 3.5% to 343 million yuan due to the impact of new media, while retail (duty-free) revenue grew by 1.2% to 262 million yuan, which was below the growth rate of international passenger volume [2] - Operating costs totaled 2.779 billion yuan, a decrease of 4.2% year-on-year, with franchise management fees down by 24.9% to 138 million yuan [2] Group 3 - The company maintains a strong position as an international aviation hub, with long-term commercial value expected to gradually release profitability [3] - Short-term challenges include the diversion of traffic to Daxing Airport and a slowdown in duty-free consumption growth, leading to a slower-than-expected recovery in non-aviation revenue [3] - Net profit forecasts for 2025-2027 have been adjusted to -173 million, 88 million, and 342 million yuan respectively, while maintaining a "recommended" rating [3]

Investment Rating - The report maintains a "Recommend" rating for the company, indicating an expected outperformance of 10%-20% relative to the benchmark index over the next six months [6][21]. Core Insights - The company reported a Q2 net profit attributable to shareholders of 450 million yuan, representing an 81.5% year-on-year increase, driven by the continuous recovery in business volume and arbitration compensation [1][6]. - The target price for the company's stock is set at 12.07 yuan, with the current price at 9.93 yuan, suggesting a potential upside of 22% [2][6]. Financial Performance Summary - **Revenue and Profitability**: - Total revenue for H1 2025 was 3.726 billion yuan, up 7.7% year-on-year, while net profit attributable to shareholders was 750 million yuan, up 71.3% year-on-year [6][7]. - For Q2 2025, revenue was 1.905 billion yuan, a 6.0% increase year-on-year, and net profit was 450 million yuan, an 81.5% increase year-on-year [6][7]. - **Segment Analysis**: - Aviation revenue for H1 2025 was 1.57 billion yuan, up 9.4% year-on-year, with passenger throughput reaching 40.03 million, a 9.2% increase year-on-year [6][7]. - Non-aviation revenue was 2.15 billion yuan, up 6.5% year-on-year, with leasing and franchise income contributing significantly [6][7]. - **Cost and Expenses**: - Operating costs for H1 2025 were 2.651 billion yuan, a 5.8% increase year-on-year, while total operating expenses were 256 million yuan, down 7.3% year-on-year [6][7]. Future Projections - The company is expected to achieve total revenue of 8.182 billion yuan in 2025, with a year-on-year growth rate of 10.2% [2][11]. - The net profit attributable to shareholders is projected to be 1.402 billion yuan in 2025, reflecting a 51.5% increase year-on-year [2][11]. Market Position and Developments - The company is expanding its operations with the upcoming completion of the T3 terminal and additional runways, which will enhance its capacity to handle 140 million passengers and over 600,000 tons of cargo annually [6][7]. - A significant contract for duty-free operations at the T3 terminal has been signed, expected to contribute positively to future revenues [6][7].