Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Tracking Traffic

Focusing on Asian logistics, transportation, and travel companies

Equity Bottom-Up

<ul>
<li>Growth rates of outbound and domestic air travel slowed again in September</li>
<li>Initial read on Golden Week demand: weak activity growth, weaker spending</li>
<li>In our view, it's increasingly difficult to retain an upbeat view of the sector</li>
</ul>


Growth rates of outbound and domestic air travel slowed again in September
Initial read on Golden Week demand: weak activity growth, weaker spending
In our view, it's increasingly difficult to retain an upbeat view of the sector


Monthly Chinese Tourism Tracker | Pace of Growth Slowed, Again | Golden Week? | October 2025

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>The top ten highest-yielding stocks under our coverage have an average yield of 7.4% for FY25F and 7.2% for FY26F, attractive amid the declining interest rate environment.</li>
<li>
<a href="https://www.smartkarma.com/entities/sinotrans-limited-h" target="_blank" data-smartkarma-citation="entities:1321:1" rel="noopener">Sinotrans (598 HK)</a>, <a href="https://www.smartkarma.com/entities/anhui-expressway-co-ltd-h" target="_blank" data-smartkarma-citation="entities:5236:1" rel="noopener">Anhui Expressway Co Ltd H (995 HK)</a>, and <a href="https://www.smartkarma.com/entities/china-railway-signal-communication-co-ltd" target="_blank" data-smartkarma-citation="entities:613:1" rel="noopener">China Railway Signal &amp; Communication (3969 HK)</a> are better quality ones with 6-7% average yield.</li>
<li>Chinese airlines are low on yields given they are still loss-making, but they have a good earnings rebound in 2H25, making them suitable for aggressive investors.</li>
</ul>


The top ten highest-yielding stocks under our coverage have an average yield of 7.4% for FY25F and 7.2% for FY26F, attractive amid the declining interest rate environment.

Sinotrans (598 HK), Anhui Expressway Co Ltd H (995 HK), and China Railway Signal &amp; Communication (3969 HK) are better quality ones with 6-7% average yield.
Chinese airlines are low on yields given they are still loss-making, but they have a good earnings rebound in 2H25, making them suitable for aggressive investors.


China & HK Strategy: The High-Yield Playbook

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analysed the earning revision of component stocks of CSI 300 in the past month.</li>
<li>We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.</li>
<li>We highlighted EPS revision on CHINA EASTERN AIRLINES, CSSC, BYD, GREE ELECTRIC APPLIANCES, NATIONAL SILICON INDUSTRY, Xinjiang Daqo, BankComm, CHINA SHIPBUILDING INDUSTRY, Cssc, BYD, China Shipbuilding Industry, Bankcomm.</li>
</ul>


We analysed the earning revision of component stocks of CSI 300 in the past month.
We tabulated stocks with the top impact on index's EPS, stocks' EPS revision, and revenue revision.
We highlighted EPS revision on CHINA EASTERN AIRLINES, CSSC, BYD, GREE ELECTRIC APPLIANCES, NATIONAL SILICON INDUSTRY, Xinjiang Daqo, BankComm, CHINA SHIPBUILDING INDUSTRY, Cssc, BYD, China Shipbuilding Industry, Bankcomm.


CSI 300 Index Earning Revision (Sep): CHINA EASTERN AIRLINES, BYD, GREE ELECTRIC APPLIANCES

<ul>
<li>The 3Q25 results will be testing grounds to justify the multiple expansion, as our coverage saw a 2% downgrade in FY25 earnings since the interim announcement.</li>
<li>Seven stocks will have over 100% YoY earnings growth in 2H25, implying strength in 3Q25 as well. Three stocks, however, will experience earnings decline.</li>
<li>The stronger ones are <a href="https://www.smartkarma.com/entities/china-eastern-airlines-co-h" target="_blank" data-smartkarma-citation="entities:1079:1" rel="noopener">China Eastern Airlines (670 HK)</a>, <a href="https://www.smartkarma.com/entities/shanghai-electric-group-company-limited-d542164d-4d5a-4ce0-b33e-5fe6bc34722c" target="_blank" data-smartkarma-citation="entities:8777:1" rel="noopener">Shanghai Electric Group Company (2727 HK)</a>, <a href="https://www.smartkarma.com/entities/china-southern-airlines-co-ltd" target="_blank" data-smartkarma-citation="entities:1078:1" rel="noopener">China Southern Airlines (1055 HK)</a>, and <a href="https://www.smartkarma.com/entities/sany-heavy-equipment-intl" target="_blank" data-smartkarma-citation="entities:11104:1" rel="noopener">Sany Heavy Equipment (631 HK)</a>. </li>
</ul>


The 3Q25 results will be testing grounds to justify the multiple expansion, as our coverage saw a 2% downgrade in FY25 earnings since the interim announcement.
Seven stocks will have over 100% YoY earnings growth in 2H25, implying strength in 3Q25 as well. Three stocks, however, will experience earnings decline.
The stronger ones are China Eastern Airlines (670 HK), Shanghai Electric Group Company (2727 HK), China Southern Airlines (1055 HK), and Sany Heavy Equipment (631 HK). 


China & HK Strategy: 3Q25 Preview - Beauty and the Beast

<ul>
<li>Despite a few pockets of improved demand, key Transpacific trade remains weak</li>
<li>Most carriers reported low (48% - 68%) but stable cargo load factors in August</li>
<li>For carriers, still lots of empty space to sell; macro view shows no "snap-back"</li>
</ul>


Despite a few pockets of improved demand, key Transpacific trade remains weak
Most carriers reported low (48% - 68%) but stable cargo load factors in August
For carriers, still lots of empty space to sell; macro view shows no "snap-back"


Monthly Air Cargo Tracker | August Shows Pockets of Growth | But LF, Pricing Both Still Very Weak

China

China Eastern Airlines Corporation Limited operates airline businesses. The Company provides passenger transport, air freight, air catering, and other related services. China Eastern Airlines conducts businesses worldwide.

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China Eastern Airlines Lt (600115 CH)

Monthly Chinese Tourism Tracker | Pace of Growth Slowed, Again | Golden Week? | October 2025

Chinese travel activity in September slowed, and a first look at Golden Week activity also suggests weak growth in travel and spending. We see few...

Tracking Traffic

China & HK Strategy: The High-Yield Playbook

With the increase in volatility in the near term due to the uncertainties from potentially higher tariffs and the Trump-Xi meeting in APEC, there...

Osbert Tang, CFA

CSI 300 Index Earning Revision (Sep): CHINA EASTERN AIRLINES, BYD, GREE ELECTRIC APPLIANCES

We analyzed CSI 300's consensus for Sep 2025 and highlighted changes of EPS in CHINA EASTERN AIRLINES (600115 CH), CSSC (600150 CH), BYD (002594...

Ke Yan, CFA, FRM

China & HK Strategy: 3Q25 Preview - Beauty and the Beast

3Q25 results will test earnings multiple expansion. Seven stocks will show over 100% YoY earnings growth in 2H25, including China Eastern,...

Osbert Tang, CFA

Monthly Air Cargo Tracker | August Shows Pockets of Growth | But LF, Pricing Both Still Very Weak

August air cargo data from a range of carriers and cargo gateways around the Pacific Rim show uneven demand, but still-low utilization and weak...

Tracking Traffic

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Monthly Chinese Tourism Tracker | Pace of Growth Slowed, Again | Golden Week? | October 2025

Chinese travel activity in September slowed, and a first look at Golden Week activity also suggests weak growth in travel and spending. We see few...

Tracking Traffic

China & HK Strategy: The High-Yield Playbook

With the increase in volatility in the near term due to the uncertainties from potentially higher tariffs and the Trump-Xi meeting in APEC, there...

Osbert Tang, CFA

CSI 300 Index Earning Revision (Sep): CHINA EASTERN AIRLINES, BYD, GREE ELECTRIC APPLIANCES

We analyzed CSI 300's consensus for Sep 2025 and highlighted changes of EPS in CHINA EASTERN AIRLINES (600115 CH), CSSC (600150 CH), BYD (002594...

Ke Yan, CFA, FRM

China & HK Strategy: 3Q25 Preview - Beauty and the Beast

​3Q25 results will test earnings multiple expansion. Seven stocks will show over 100% YoY earnings growth in 2H25, including China Eastern,...

Osbert Tang, CFA

Monthly Air Cargo Tracker | August Shows Pockets of Growth | But LF, Pricing Both Still Very Weak

August air cargo data from a range of carriers and cargo gateways around the Pacific Rim show uneven demand, but still-low utilization and weak...

Tracking Traffic

3Q25 results will test earnings multiple expansion. Seven stocks will show over 100% YoY earnings growth in 2H25, including China Eastern,...