Daily Investment Strategy

Daily focus ： Real-Time Quote

China Southern Airlines (1055): The performance of the three major airlines is expected to diverge in 2025. China Southern Airlines is projected to perform best, achieving profitability with a net profit attributable to shareholders of RMB 800 million to RMB 1 billion. In contrast, Air China and China Eastern Airlines are expected to continue recording losses, with net losses attributable to shareholders ranging from RMB 1.3 billion to RMB 1.9 billion and RMB 1.3 billion to RMB 1.8 billion, respectively. In summary, the recovery trend in the aviation industry is clear. China Southern Airlines has taken the lead in achieving a full return to profitability, demonstrating operational resilience; although Air China and China Eastern Airlines' figures were affected by tax accounting adjustments, their business fundamentals have steadily improved. Looking ahead, as supply and demand further balance, investors should focus on the actual profitability recovery capabilities of each airline under cost control.

China's official manufacturing PMI contracted again in January

China's official manufacturing PMI fell to 49.3 in January, ending a brief period of expansion and reflecting the current macroeconomic predicament of weak domestic demand intertwined with external uncertainties. Looking at the sub-indices, the new orders index fell to 49.2, indicating that with the real estate market still stagnant and global trade protectionism escalating, end-user demand remains the core factor dragging down the economy. Notably, the producer price index rose above the 50-point mark for the first time in nearly 20 months, reflecting the transmission of raw material costs to downstream companies, but also exacerbating the squeeze on downstream enterprises' profits. With the Lunar New Year holiday in February, the return of workers to their hometowns will further suppress production momentum, and manufacturing activity is expected to remain under pressure in the short term.

Hong Kong Stock Connect recorded a net inflow of HK$3.22 billion on Friday, with CSPC Pharmaceutical Group (1093) recording the largest net inflow at HK$935 million, followed by Xiaomi Group (1810); Zijin Mining (2899) recorded the largest net outflow at HK$635 million, followed by China Mobile (941).