Investment Rating - The investment rating for the transportation industry is "Positive" (maintained) [4] Core Views - The express delivery sector shows significant divergence in June data, with a focus on the industry's anti-involution process [3] - The express logistics market is expanding, supported by the national strategy to boost domestic demand, with a year-on-year growth of 15.8% in express delivery volume in June 2025 [5] - The performance of major express companies varies, with SF Express maintaining a business volume growth rate of over 30%, while other companies like YTO Express and Yunda Express show slower growth [4][5] Summary by Sections Express Logistics - In June 2025, the total express delivery volume reached 16.87 billion pieces, a year-on-year increase of 15.8%, with total revenue of 126.32 billion yuan, up 9.0% [5][24] - Major express companies' performance in June: YTO Express (2.627 billion pieces, +19.34%), Yunda Express (2.173 billion pieces, +7.41%), SF Express (1.460 billion pieces, +31.77%) [4][28] - The market share for these companies is 15.6% for YTO, 12.9% for both Yunda and Shentong, and 8.7% for SF Express [4] Air Transportation - The air travel sector is expected to benefit from macroeconomic recovery, with a year-on-year increase of 4.4% in passenger transport volume in June 2025 [52] - Major airlines are projected to improve their performance in Q2 2025 due to better supply-demand dynamics and lower oil prices [8] Shipping and Ports - The shipping sector is anticipated to benefit from OPEC+ production increases and a favorable economic environment, with a focus on crude oil transportation [16] - The Baltic Dry Index (BDI) increased by 27.8% week-on-week, indicating a recovery in the bulk shipping market [11][68] - Container throughput at Chinese ports showed a slight increase in cargo volume but a decrease in container throughput [81] Road and Rail - In June 2025, road freight volume increased by 2.86% year-on-year, while rail freight volume rose by 7.36% [45] - National logistics operations are running smoothly, with a slight increase in freight truck traffic [14] Supply Chain Logistics - Companies like Shenzhen International and Debon Logistics are expected to benefit from strategic transformations and improved profitability [15]

Core Insights - The 12th Shenzhen International Game Festival will be held from July 18 to 20, featuring over 100 domestic and international animation and gaming companies [1][2] - The festival will showcase a special exhibition celebrating the 40th anniversary of the China Animation Association, highlighting the evolution of Chinese animation [1][2] Industry Overview - The event is recognized as the largest animation and gaming exhibition in the Guangdong-Hong Kong-Macao Greater Bay Area, attracting over 5,000 companies and 1.35 million visitors since its inception in 2014 [1] - The two-dimensional market in China is experiencing explosive growth, with projections indicating that the user base will reach 503 million by 2024, primarily driven by Generation Z [2] Exhibition Highlights - The special exhibition will feature classic Chinese animations such as "Big Head Son and Small Head Dad" and "Eight Immortals Crossing the Sea," as well as contemporary works like "Boonie Bears" and "White Snake 2: The Tribulation of the Green Snake" [1][2] - Renowned institutions like Beijing Film Academy and Nanjing University of the Arts will showcase award-winning works, emphasizing the strength of the new generation in Chinese animation [2] Participation and Engagement - Major companies such as CCTV Animation, Bilibili, and Tencent Animation will participate, alongside popular guests who will engage with fans [2]

Summary of Key Points Core Viewpoint - As of July 14, a total of 138 stocks reached their 52-week highs, indicating a strong performance in the market, with notable leaders including Green Heart Group Holdings, OK Blockchain, and Pearl River Steel Pipe [1]. Group 1: Top Performers - Green Heart Group Holdings (02999) achieved a closing price of 0.013 with a peak of 0.017, marking a 70.00% increase [1]. - OK Blockchain (01499) closed at 0.680, reaching a high of 0.690, reflecting a 48.39% rise [1]. - Pearl River Steel Pipe (01938) had a closing price of 0.335 and a peak of 0.340, resulting in a 33.33% increase [1]. Group 2: Other Notable Stocks - Weishi Jiajie (00856) saw a 32.01% increase, closing at 8.870 with a high of 11.300 [1]. - Cloud Intelligence (09678) reached a high of 520.000, closing at 510.000, which is a 20.99% increase [1]. - China Chengtong Development Group (00217) closed at 0.165 with a peak of 0.166, marking a 14.48% rise [1]. Group 3: Additional Stocks with Significant Increases - Sihuan Pharmaceutical (00460) closed at 1.380, reaching a high of 1.430, which is a 14.40% increase [1]. - Taited Pharmaceutical (03880) had a closing price of 36.950 and a peak of 37.400, reflecting a 13.85% rise [1]. - Beihai Kangcheng-B (01228) closed at 0.850 with a high of 0.960, resulting in a 12.94% increase [1].

Core Viewpoint - The event held on July 11, 2025, marks the establishment of the Shenzhen International Marine Innovation Research Institute, focusing on marine technology and innovation, with strategic partnerships aimed at enhancing marine research and development capabilities in Shenzhen [1][2]. Group 1: Event Overview - The event was co-hosted by the China Ocean Mineral Resources Research and Development Association, Shenzhen Marine Development Bureau, and Shenzhen Qianhai Management Bureau [1]. - A strategic cooperation framework agreement was signed among the three parties to establish the Shenzhen International Marine Innovation Research Institute, which will include "seven centers + two platforms" for deep-sea scientific innovation [1]. - The event featured the unveiling of several key marine projects, including the Shenzhen International Marine Innovation Research Institute and the Indian Ocean International Marine Young Scholars Alliance [1]. Group 2: Technological Innovations - The "Deep Blue Intelligent i3 Voyage" was introduced, showcasing various innovative, integrated, and intelligent unmanned scientific research devices, including smart seawater sampling drones and remote sensing platform drones [2]. - The "Deep Blue Dream 2035" global scientific exploration plan was announced, which is China's first cross-national marine exploration initiative involving public participation [2]. - The research vessel "Xiangyanghong 10" was opened for visits by local middle school students, allowing them to experience marine exploration technology firsthand [2].

Core Insights - The development of cold chain logistics in China is being redefined by new infrastructure initiatives, particularly by Shenzhen International, which is a leading logistics operator in the Guangdong-Hong Kong-Macao Greater Bay Area [1] - Shenzhen International is aligning its strategies with national logistics planning, focusing on building a robust cold chain infrastructure through new constructions, acquisitions, and operational improvements [1] Group 1: Infrastructure Development - Shenzhen International has implemented a "water-land-air-rail + intelligent cold chain" strategy since 2019, investing in multiple cold chain logistics parks in key cities such as Shenzhen, Shanghai, Nanjing, Tianjin, Shijiazhuang, and Chengdu [1] - The cold storage facilities in the Shenzhen Li Guang project cover an area of approximately 50,000 square meters, including a frozen warehouse with 29,261 slots and a refrigerated warehouse with 4,376 slots [3] - The Nanjing Jiangning project features a cold storage area of about 29,000 square meters and a dry warehouse of 3,100 square meters, equipped with over 30,000 pallet positions [5] - The Shijiazhuang Zhengding project has a total construction area exceeding 100,000 square meters, with a pharmaceutical and food cold storage area of about 70,000 square meters [7] Group 2: Operational Strategy - Shenzhen International employs a "self-operated + cooperative" dual-track model to enhance its cold chain operational capabilities [9] - The company has established a cold chain operation team in projects like Shijiazhuang Zhengding and Chengdu Qingbaijiang, while also forming a joint venture with Wanwei Logistics to enhance service offerings [11] Group 3: Technological Integration and ESG - Shenzhen International integrates ESG principles into its operations, responding to national policies on cold chain logistics intelligence [12] - The Shenzhen Li Guang project features a smart management system that allows for precise temperature control within ±0.5°C and real-time monitoring of temperature and humidity [14] - The Nanjing Jiangning project utilizes photovoltaic systems to reduce carbon emissions by over 1,000 tons annually and includes charging stations for new energy vehicles [14] Group 4: Policy Support and Market Opportunities - The national development and reform commission has introduced policies to support cold chain logistics as a key area of focus, with nearly 500 billion yuan allocated for major projects since 2025 [15] - The establishment of national backbone cold chain logistics bases is progressing, with the goal of creating 100 such bases as part of the "14th Five-Year Plan" [16] - Shenzhen International is positioned to seize historical development opportunities in the cold chain logistics sector due to favorable policy support [16]

Group 1 - The 2025 China (Shenzhen) International Consumer Electronics Show opened with over 400 global exhibitors, highlighting the growth and innovation potential of China's consumer electronics industry [1] - The theme of the exhibition is "AI Intelligence, Smart Innovation Changing Life," showcasing advancements in technology [1] Group 2 - Yanhe Technology presented its "Light-Powered" theme, featuring the "Qiguang Series" and "Qunying Series" of perovskite solar batteries, which received significant attention and led to multiple on-site agreements with potential clients [2] - The company offers integrated and customized energy solutions for various applications, significantly enhancing battery life and addressing the demand for lightweight, flexible, and long-lasting power sources [2] - The Qiguang Series is designed for low-power products, achieving an output of 20mW/cm under high illumination and up to 180W/cm in indoor conditions, with a thickness of 0.5mm and a weight of less than 0.15g per square centimeter [2] Group 3 - The Qunying Series features a flexible design with a thickness of only 0.2mm, suitable for space-constrained applications like wearables and smart tags [3] - The Qiguang/Qunying Plus version integrates a complete circuit design and energy storage, enabling a "light-powered" experience for AI smart hardware [3] Group 4 - Yanhe Technology, established in February 2024, focuses on the research and industrialization of perovskite solar batteries, supported by several well-known investment institutions [4] - The company has built a 100MW fully automated production line in Changde, Hunan, and a 10MW pilot and R&D platform in Beijing, establishing a comprehensive "R&D-Manufacturing-Market" layout [4] Group 5 - Yanhe Technology's perovskite solar batteries received certification from the global testing organization TÜV Rheinland, marking a significant milestone for the application and promotion of perovskite photovoltaic technology in the consumer market [5] - The company has also achieved multiple certifications, including EU RoHS and REACH, facilitating the global green transition of consumer products [5] - At the upcoming IFA in Berlin, Yanhe Technology will showcase new large-size flexible perovskite solar batteries and additional application cases, further accelerating the commercialization of this technology [5]

Group 1 - The 2025 Shenzhen International Optical Expo opened on June 25, attracting over 200 exhibitors from more than 20 countries and over 30,000 professional visitors [1] - The exhibition covers an area of 15,000 square meters and is divided into nine themed zones, showcasing the entire industry chain [1] - The event features a special exhibition on the 45-year development history of the Longgang eyewear industry, highlighting its evolution from traditional to smart eyewear [1] Group 2 - Lohas Group showcased its first mass-produced AI smart glasses, "Paipai Mirror A1," which integrates multiple functions such as photography, video recording, and translation [2] - RayNeo, a leading AR brand, presented new AR glasses that achieved a market share of 52% during the recent "618" sales event [2] - The 2025 Shenzhen International Eyewear Design Competition announced its winners, aiming to discover and cultivate outstanding eyewear design talent [2] Group 3 - Shenzhen's eyewear industry has developed a complete industrial chain and rich resources over 40 years, actively embracing technological innovation for smart transformation [3]

Core Viewpoint - Shenzhen International Holdings Limited is the only wholly overseas-listed company among Shenzhen's state-owned enterprises, focusing on modern logistics, toll roads, ports, and environmental protection, aiming to become a leading urban infrastructure developer and operator in China [1] Group 1: Business Overview - The company operates in four main sectors: toll roads and environmental protection, logistics (including logistics parks and services), ports and related services, and other investments [1] - The toll road and environmental protection business relies primarily on Shenzhen Expressway Group Co., Ltd. for operations [1] - The company has developed a "投建管转" (investment, construction, management, and transfer) large closed-loop business model and a "投建融管" (investment, construction, financing, and management) small closed-loop business model to achieve sustained performance growth [1] Group 2: Financial Performance - The transformation of the South China logistics park is expected to contribute over HKD 156.58 billion in after-tax profits through land and monetary compensation from the government, followed by real estate development [2] - The company has maintained a stable dividend policy with a payout ratio of around 50% of net profit since 2017, with cumulative dividends of HKD 155.93 billion from 2015 to 2024 [2] - Future profits from the South China logistics park transformation and logistics port REITs are expected to continue driving net profit growth [2] Group 3: Investment Analysis - Forecasted net profits for Shenzhen International from 2025 to 2027 are HKD 30.81 billion, HKD 34.30 billion, and HKD 39.25 billion, respectively, with corresponding dividend yields of 8.28%, 9.22%, and 10.55% based on a 50% payout ratio [3] - The company’s exploration of logistics park transformation and asset securitization enhances earnings elasticity, with expectations of sustained performance from the logistics park transformation project over the next 6-8 years [3] - The current PE valuation of 5.9x is below the average of comparable companies, while the dividend yield of 8.28% is above the average, indicating attractive low valuation and high dividend characteristics [3]

Investment Rating - The report initiates coverage with a "Buy" rating for Shenzhen International [1][6] Core Views - Shenzhen International is a state-owned enterprise with high-quality resources, focusing on logistics, toll roads, ports, and environmental protection, aiming to become a leading urban infrastructure developer and operator in China [5][17] - The company has developed a "big closed-loop" business model for logistics park transformation and a "small closed-loop" model for asset securitization, enhancing its earnings resilience [5][6] - The transformation of the South China logistics park is expected to contribute over HKD 15.658 billion in after-tax revenue [5] - The company maintains a stable dividend policy with a payout ratio of around 50% of net profit, making it an attractive high-dividend stock [5][37] Financial Data and Profit Forecast - Revenue projections for Shenzhen International are as follows: - 2023: HKD 20.524 billion - 2024: HKD 15.571 billion - 2025E: HKD 16.007 billion - 2026E: HKD 16.488 billion - 2027E: HKD 17.159 billion - Net profit attributable to shareholders is forecasted to be: - 2023: HKD 1.902 billion - 2024: HKD 2.872 billion - 2025E: HKD 3.081 billion - 2026E: HKD 3.430 billion - 2027E: HKD 3.925 billion [4][6] Business Model and Strategy - The company operates in four main sectors: toll roads and environmental protection, logistics, port services, and other investments [5][28] - The "big closed-loop" model focuses on land value appreciation through transformation and redevelopment, while the "small closed-loop" model involves asset securitization through public REITs or private funds [5][28] - The logistics and port business is the core of the company, with toll roads and environmental protection providing a stable revenue base [5][28] Market Position and Competitive Advantage - Shenzhen International is the only state-owned enterprise in Shenzhen that is publicly listed and focuses on modern logistics, toll roads, ports, and environmental protection [5][17] - The company has a strong presence in key economic regions such as the Guangdong-Hong Kong-Macao Greater Bay Area, Yangtze River Delta, and Beijing-Tianjin-Hebei Economic Zone [5][17] - The company has a competitive edge due to its strategic location and experience in land development and asset management [5][9] Dividend Policy - The company has maintained a consistent dividend payout ratio of around 50% since 2017, with total dividends of HKD 15.593 billion from 2015 to 2024 [5][37] - Future dividends are expected to remain stable, supported by the logistics park transformation and asset securitization initiatives [5][37]

Exhibition Overview - The 2025 Shenzhen International Power Battery Recycling, Treatment, and Utilization Industry Exhibition will take place from November 14-16, 2025, at the Shenzhen International Convention and Exhibition Center, coinciding with the 27th China International High-Tech Fair [2] - The exhibition aims to provide services for procurement, business cooperation, market expansion, and brand promotion in the battery recycling industry, inviting trade organizations, research institutions, and decision-makers to discuss industry trends and innovations [2] Market Size - The global waste lithium battery generation is projected to reach 2.2 million tons in 2024, with China contributing approximately 1.1 million tons, accounting for 50% of the global total [2] - By 2030, global waste lithium battery generation is expected to exceed 8 million tons, with China's share surpassing 4 million tons [2] - The global waste lithium battery recycling market is valued at $12 billion in 2024, while China's market size is estimated at 48 billion RMB, with a projected annual compound growth rate of 25% globally and 30% in China over the next five years [2] Target Audience - The exhibition targets various sectors including new energy vehicles, buses, electric logistics vehicles, and battery manufacturers, as well as government departments, industry associations, research institutions, and financial institutions [4] Exhibition Scope - The exhibition will cover a wide range of topics including waste battery recycling technologies, dismantling equipment, and the reuse of retired power batteries, as well as environmental systems and waste treatment equipment [5]