Daily focus：China Eastern Airlines (670)
China Eastern Airlines achieved high-quality growth on both the supply and demand sides. Data shows that China Eastern Airlines' passenger capacity (ASK) increased by 6.51% year-on-year in November, while its passenger traffic volume (RPK) increased even more significantly by 10.35%. This widening supply-demand gap directly drove the load factor up to 87.37%, a year-on-year increase of 3.04 percentage points, better than China Southern Airlines' 86.29% and Air China's 83.3%. Furthermore, China Eastern also performed well in cargo, with cargo and mail turnover increasing significantly by 13.30% year-on-year. It actively optimized its route network, launching and increasing the frequency of several popular international routes, including Beijing Daxing to Muscat and Shanghai Pudong to Melbourne. The fleet size also steadily expanded to 825 aircraft, including the continued introduction of the domestically produced C919 aircraft.
Green Light: Smart Driving’s “Second Half” & Top Picks
The Ministry of Industry and Information Technology (MIIT) officially announced the first batch of Level 3 conditional autonomous driving vehicle approvals, with Changan Automobile and BAIC Blue Valley (Jihu) leading the pack. Both automakers are authorized to conduct on-road pilot tests on designated highways and expressways in Chongqing and Beijing, respectively, at speeds of up to 50 km/h and 80 km/h. This approval signifies that China's autonomous driving industry has officially entered a new stage of compliant on-road operation and pilot testing, moving beyond simple technology research and development. This not only lays the regulatory foundation for large-scale commercialization but will also exacerbate market differentiation—leading automakers with advanced intelligent driving capabilities will use this to build technological moats, indicating that the "second half" of the intelligent connected vehicle race has accelerated. We believe that leading automakers and related equipment stocks in autonomous driving technology are likely to outperform.
On Monday, Hong Kong Stock Connect saw a net inflow of HK$3.65bn, with Xiaomi Group (1810) experiencing the largest net inflow at HK$1.38bn, followed by Ping An Insurance (2318). On the other hand, Tencent Holdings (0700) recorded the largest net outflow at HK$770mn, followed by Hua Hong Semiconductor (1347).
Hong Kong stocks fell throughout the day, with all three major indices declining. The Hang Seng Index closed at 25,235 points, down 393 points or 1.5%; the H-share Index closed at 8,757 points, down 159 points or 1.8%; and the Hang Seng Tech Index closed at 5,402 points, down 95 points or 1.7%. Total market turnover was HK$201.5 billion. Gold mining stocks were significantly pressured, with Zijin Gold International (2259) down 6%, Zijin Mining (2899) down 4.4%, and Zhaojin Mining (1818) down 3.8%. Newly listed Guoxia Technology (2655) rose 117.9% to HK$43.8.
Source: KGI Investment Products and Solutions Department
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