CICC has upgraded its profit forecast for 2026 and expects market valuation for CHINA EAST AIR (600115.SH, 00670) to rise as the cycle progresses. The firm has shifted its valuation model to 2026, raising the A-share target price by 30% to RMB6.5, corresponding to a 24.4x 2026 P/E ratio. The H-share target price was lifted by 56.7% to HK$5.5, reflecting an 18.7x 2026 P/E multiple, while maintaining an "Outperform Industry" rating.

In Q3, CHINA EAST AIR reported revenue of RMB39.59 billion, up 3.1% year-on-year, with net profit reaching RMB3.53 billion, or earnings per share of RMB0.16, a 34.4% increase, broadly in line with expectations. The report noted that lower oil prices contributed to reduced operating costs per unit, which fell 4.3% YoY in Q3, primarily due to an 11.2% decline in domestic fuel prices.

However, due to lower-than-expected industry-wide ticket prices in the first three quarters of 2025, CICC has cut its 2025 net profit forecast for CHINA EAST AIR's A/H shares by 37.5% to RMB1.49 billion. Conversely, improved ticket price expectations led to an 8.3% upward revision in the 2026 net profit forecast to RMB5.93 billion.