Gelonghui November 20 | J.P. Morgan Chase published a report stating that after taking into account the latest travel trends, the analysis model of mainland aviation stocks was updated to maintain an overall positive view. Since the beginning of the year, mainland aviation stocks have fallen by about 20%, reflecting the market's concern about post-epidemic travel demand. However, the bank believes that the market is too worried, and strong returns have contributed to the recovery of profits. Among them, Spring Airlines has recorded a record high in profits, and the profits of the three major mainland airlines have surpassed expectations in the third quarter, reflecting a recovery trend. According to the bank, the pressure on fuel costs is easing and the RMB exchange rate is picking up. It believes that mainland aviation stock prices are catching up. In addition, current market conditions reflect that there is room for profit in the fourth quarter to rise. The outlook for next year is positive, and the yield trend is strong under tight market supply. The bank's preference for mainland aviation stocks is Air China, China Southern Airlines, Spring Airlines, and China Eastern Airlines in that order. The ratings for all covered mainland aviation stocks were “increased holdings”. In response to the adjustment of profit forecasts, the target prices of the three major airline stocks were lowered. The target price for Air China was lowered from HK$7.6 to HK$6.8, the target price for China Eastern Airlines was lowered from HK$3.5 to HK$3.2, and the target price for China Southern Airlines was lowered from HK$6 to HK$5.