HK Stock Market Move | Aviation stocks mostly rose, with Morgan Stanley raising the ratings of several domestic airlines. Strong demand during the Spring Festival is expected to catalyze optimistic expectations for demand.

Most aviation stocks turned higher, as of the time of writing, Air China Limited (00753) rose by 4.85% to HK$4.76; China Eastern Airlines (00670) rose by 4.7% to HK$2.45; China Southern Airlines (01055) rose by 3.75% to HK$4.24; MEILAN AIRPORT (00357) rose by 1.61% to HK$8.19. Guotai Junan released a research report stating that the Chinese aviation industry has a logic of exceeding expectations, with the trend of supply and demand recovery confirmed by 2025. Considering the marketization of ticket prices and the significant slowdown in fleet growth, it is expected to start an upward trend in profitability. Market expectations for the long-term logic are still at a low point, with greater divergence providing more room for growth. The Spring Festival travel rush in 2025 is expected to catalyze optimistic expectations. The strong demand during the Spring Festival travel rush is expected to catalyze optimistic demand expectations. Proactive pre-sale strategies are expected to catalyze continued positive changes in revenue management expectations, and profit performance is expected to catalyze an upward trend in profitability expectations. The suggestion is that oil prices and exchange rates do not change the long-term value of airlines, which may provide a contrarian opportunity. It is worth mentioning that recently, Morgan Stanley upgraded the ratings of several domestic airline AH shares. Among them, Morgan Stanley upgraded the rating of Air China Limited H shares to overweight with a target price of HK$7.61. Morgan Stanley upgraded the rating of Air China Limited A shares to neutral with a target price of RMB 9.63. Morgan Stanley upgraded the rating of China Southern Airlines H shares to overweight with a target price of HK$5.90. Morgan Stanley upgraded the rating of China Southern Airlines A shares to neutral with a target price of RMB 7.87. Morgan Stanley upgraded the rating of China Eastern Airlines A shares to neutral with a target price of RMB 4.66.