Investment Rating - The report rates the transportation industry as "Outperform" [2] Core Insights - The easing of tensions in the Middle East has led to a decline in oil tanker rates, with the VLCC market experiencing a significant price drop of 14.31% compared to June 19, with current rates at WS59.88 [3][12] - In the shipping sector, the demand for European routes has improved, resulting in a 10.6% increase in spot market booking prices, while the US routes have seen a decline of 7.0% and 11.9% for the West and East coasts, respectively [3][14] - During the summer travel season, Hainan Airlines plans to operate nearly 2,500 flights daily, with domestic ticket bookings reaching 17.9 million, a 5% increase year-on-year [3][15] - The newly unveiled Zhuque eVTOL has a range of 600 kilometers, and from January to May, national railway freight volume increased by 3.1% year-on-year, totaling 1.641 billion tons [3][22] Summary by Sections 1. Industry Hot Events - The Middle East situation has calmed, leading to a reduction in oil tanker rates and a return to supply-demand fundamentals [12] - Hainan Airlines is set to launch 75 new domestic and international routes during the summer travel season, with a daily flight plan of nearly 2,500 [15] - The Zhuque eVTOL was showcased, achieving a range of 600 kilometers, while railway freight volume showed a year-on-year increase [22] 2. High-Frequency Data Tracking - Air logistics: The overall trend for routes to the Asia-Pacific remains stable, with air freight prices showing a decline [25] - Shipping ports: The domestic container shipping price index has decreased, while dry bulk freight rates have also fallen [43] - Express logistics: In May 2025, express delivery volume increased by 17.20% year-on-year, with revenue rising by 8.20% [54] - Air travel: The average daily international flights in the last week of June 2025 increased by 17.51% year-on-year [3] - Road and rail: The number of freight trucks on highways increased by 0.88% week-on-week [3] 3. Investment Recommendations - Focus on the equipment and manufacturing export chain, recommending companies like COSCO Shipping, China Merchants Energy Shipping, and Huamao Logistics [4] - Attention to low-altitude economy investment opportunities, recommending CITIC Offshore Helicopter [4] - Investment opportunities in the road and rail sector, recommending Sichuan Chengyu, Gansu Expressway, and others [4] - Interest in cruise and ferry investment opportunities, recommending Bohai Ferry and Haixia Co [4] - E-commerce and express delivery investment opportunities, recommending SF Express, Jitu Express, and Yunda [4] - Investment opportunities in the aviation sector, recommending China National Aviation, Southern Airlines, and others [4]

Core Insights - The 2025 summer transportation period will last from July 1 to August 31, totaling 62 days, with airlines actively preparing by increasing capacity and deploying multiple C919 aircraft to meet demand [1] - The number of available flights during the summer transportation period is expected to increase by approximately 7.3% year-on-year, with a projected total of 1.9597 million flights, although actual passenger flights are expected to grow by about 2.3% due to weather and cancellations [1] Group 1: Airline Operations - China Southern Airlines plans to operate over 3200 flights daily across 970 domestic and 260 international routes, with 5 C919 aircraft deployed on 13 routes [2] - China Eastern Airlines aims to execute over 1150 passenger routes with more than 3200 daily flights, including 11 C919 aircraft in commercial operation [2] - Hainan Airlines expects to operate approximately 53,000 flights, transporting nearly 9.06 million passengers, with a significant increase in international flights [3] Group 2: Route Adjustments - Airlines are strategically adjusting their route offerings, with China Southern Airlines opening new routes to popular tourist destinations and increasing flight frequencies [4] - 吉祥航空 is adding multiple cool destination routes and increasing flights to Japan and South Korea by over 19% [4] - Hainan Airlines is adjusting capacity based on passenger demand, focusing on popular international destinations as travel restrictions ease [5] Group 3: Market Trends - The expansion of China's visa-free travel and improved payment facilitation for foreigners is expected to boost inbound tourism, with cities like Manchester and Tokyo becoming popular destinations [5] - The international route structure is anticipated to continue evolving due to changes in international trade and tourism, with emerging markets becoming focal points for new route development [5]

Core Viewpoint - The summer travel season is approaching, with airlines increasing capacity and launching new routes, particularly to the northwest and northeast regions of China, leading to a decrease in ticket prices for flights from Beijing to Xinjiang [1][3][5]. Group 1: Airline Capacity and Route Expansion - Multiple airlines, including China Southern Airlines and Hainan Airlines, are enhancing flight capacity to popular destinations in the northwest, such as Xinjiang, Inner Mongolia, and Qinghai, with new routes and increased flight frequencies [3][7]. - China Southern Airlines plans to operate over 2,300 flights weekly from Beijing Daxing, with new routes to Changbai Mountain, Xining, and other tourist destinations [3]. - The planned flight volume to Xinjiang during the summer travel period is expected to increase by over 20% year-on-year, with significant growth in smaller airports in the region [3]. Group 2: Ticket Price Trends - Ticket prices for direct flights from Beijing to various destinations in Xinjiang have decreased, with prices for flights dropping by over 1,000 yuan for some routes compared to two weeks prior [1][5]. - As of June 30, the lowest prices for flights from Beijing to Urumqi, Alatai, and Hami were reported at 2,430 yuan, 1,930 yuan, and 2,577 yuan, respectively, reflecting significant price reductions [5][6]. - The average ticket price for summer travel has decreased by 1.3% year-on-year, attributed to high pre-sale prices in 2024 and increased demand [6]. Group 3: Enhanced Passenger Services - Airlines are introducing targeted passenger services for the summer season, including expanded pet transport services and dedicated charter services for students [1][7]. - China Eastern Airlines has upgraded its "pet in cabin" service, adding 16 new routes, while Hainan Airlines is focusing on services for students and unaccompanied minors [7].

Core Viewpoint - The expansion of international air routes from Hainan is significantly enhancing the export capacity of local products, particularly lychees, to global markets, thereby promoting trade and economic growth in the region [1][4][6]. Group 1: International Route Expansion - Hainan Airlines has opened seven new international routes this year, including connections to London, Singapore, Tokyo, and Jeddah, which enhances the region's connectivity to Europe, the Middle East, and Asia [1][4]. - The total number of international routes from Hainan has reached 72, facilitating trade and travel [1]. - The new direct flight from Haikou to Jeddah is seen as a bridge for economic and cultural exchange between China and Saudi Arabia [2]. Group 2: Export Growth and Logistics - This year, over 140,000 pounds of Hainan lychees are being exported, with significant increases in both quantity and destination countries compared to previous years [1][6]. - The price of Hainan lychees can reach €40 to €45 per kilogram in European and Middle Eastern markets, indicating a substantial increase in value post-export [6]. - Hainan's airport has implemented measures to ensure the efficient transport of lychees, resulting in a 164% increase in outbound lychee shipments from Haikou Airport [6]. Group 3: Cargo and Passenger Volume - In the first five months of the year, the number of passengers traveling on international routes from Hainan reached approximately 410,000, marking a 140% year-on-year increase [4]. - The total international export volume from Hainan has reached 5,920 tons, reflecting a 69% increase compared to the previous year [6]. - The establishment of new cargo routes, such as Haikou to Tbilisi, enhances the efficiency of air freight connections between Hainan and international markets [7].

吉达，是沙特阿拉伯王国第二大城市、第一大港、金融和贸易中心，也是沙特重要的旅游城市。吉达阿 卜杜勒-阿齐兹国王国际机场位于吉达市北端，是沙特最繁忙的机场之一，也是中东地区乃至世界最繁 忙的机场之一，海口—吉达航线的开通将为中沙两国旅客提供更加便利的交通选择，进一步助力两国之 间的人文交流和经贸往来。 海口作为海南航空的总部所在地，国内、国际航线网络丰富。目前，海南航空已开通的海口始发国际及 地区航线包括海口至吉隆坡、西雅图、伦敦、莫斯科、奥克兰、悉尼、墨尔本、迪拜、新加坡、曼谷、 万象、首尔、中国香港、中国澳门、东京（成田）、大阪等地，搭建起海南地区辐射美洲、欧洲、大洋 洲、亚洲的国际及地区航线网络。此外，自2024年2月9日起，中国扩大了59国人员免签入境海南事由， 因旅游、商贸、访问、探亲、医疗、会展或体育竞技等需求入境，可以免签在海南停留不超过30天。同 时，海南航空在海南拥有丰富的国内航线网络，包括海口至北京、上海、广州、深圳、重庆、成都、杭 州、南京、西安、乌鲁木齐等近60条航线，极大地满足海南及全国各地旅客"一程多站"中转至国际航 班。 截至目前，海南航空已恢复、新开及计划运营北京、上海、深圳、海 ...

Core Viewpoint - Hainan Airlines plans to resume its Shenzhen-Tel Aviv international route starting June 29, becoming the first non-Israeli airline to operate flights to Israel [1][2]. Group 1: Route Details - The Shenzhen-Tel Aviv route will operate three round trips weekly on Tuesdays, Fridays, and Sundays [1]. - Departure from Shenzhen Bao'an International Airport is scheduled at 05:45, arriving at Tel Aviv Ben Gurion International Airport at 12:00, with a flight duration of approximately 11 hours and 15 minutes [1]. - The return flight will leave Tel Aviv at 13:30, arriving back in Shenzhen at 05:00 the next day, with a flight duration of about 10 hours and 30 minutes [1]. Group 2: Hainan Airlines' Network - Shenzhen serves as a significant hub for Hainan Airlines, which has a rich network of domestic and international routes [2]. - Current international direct flights from Shenzhen include destinations such as Vancouver, Paris, Rome, Milan, Brussels, Vienna, Budapest, Madrid, Auckland, Cairo, and Tel Aviv [2]. - Hainan Airlines has established over 60 international and regional round-trip passenger routes from various cities, including Beijing, Shanghai, Shenzhen, Haikou, Chongqing, Xi'an, Changsha, Dalian, Guangzhou, Hangzhou, Chengdu, Guiyang, Lanzhou, and Yichang [2].

Core Viewpoint - HNA Group is enhancing its service offerings by transitioning from a simple transportation service to a comprehensive travel service, focusing on customer needs and preferences [2][3]. Group 1: Promotional Activities - HNA Group's airlines have launched various promotional activities centered around air travel to cater to the actual travel demands of passengers during the summer season [2]. - For example, Hainan Airlines is offering a 10% discount on hotel room rates for travelers flying into Beijing, provided they show their boarding pass and ID at the Marriott hotel [2]. - Hong Kong Airlines is running a flash ticket promotion for its Golden Pigeon Club members, offering a 50% cash voucher on the ticket price for future purchases after traveling on selected flights [2]. Group 2: Lucky Draw Event - The "Feifeile Lucky Night" cash draw event is a key innovative project by HNA Group, aimed at sharing the company's growth with consumers and promoting the aviation tourism economy [5]. - The event occurs every Tuesday, where passengers flying with any of the 11 designated airlines automatically qualify for the cash draw [5]. - There are 3,173 cash prizes available each week, including a grand prize of 48,888 yuan, with additional prizes of 5,000 yuan, 1,000 yuan, 200 yuan, and 50 yuan [5].

Core Viewpoint - HNA Group's acquisition of 100% equity in Hainan Tianyu Flight Training Co., Ltd. has raised concerns from the Shanghai Stock Exchange regarding the reasonableness of the transaction price, especially given the decline in net assets [2][3] Group 1: Transaction Details - The transaction price was based on an asset-based valuation of 749 million yuan, which represents a 12.68% premium over the net asset value of 665 million yuan as of December 31, 2019 [2] - The price was also based on an income approach valuation of 799 million yuan, reflecting a 34.37% premium over the net asset value of 595 million yuan as of December 31, 2024 [2] - The net asset value of Tianyu Flight Training decreased by 10.53% from the previous transaction date, raising questions about the increase in valuation despite the decline in net assets [2] Group 2: Evaluation Methodology - HNA Group justified the use of the income approach for valuation by highlighting Tianyu Flight Training's flight training qualifications, strong instructor resources, and good training environment, as well as its long-term partnerships with several airlines [3] - The Shanghai Stock Exchange requested further details on the intangible assets contributing to the premium, including their names, purposes, procurement dates, and suppliers [3] Group 3: Financial Performance and Risks - Tianyu Flight Training's accounts receivable as of the end of 2024 amounted to 419 million yuan, representing 79.77% of current assets, and accounts receivable accounted for 108.83% of revenue, an increase of 16.89 percentage points from the previous year [4] - The company did not provision for bad debts under the aging method for accounts receivable, and the bad debt provisions for related parties significantly decreased [4] - The Shanghai Stock Exchange requested an explanation for the high accounts receivable to revenue ratio, the reasons for the decrease in cash collections, and any risks associated with the potential inability to recover accounts receivable [4]

Core Viewpoint - The launch of the "Paperless Fuel Order Project" by HNA Group's five airlines in collaboration with China Aviation Oil marks a significant step towards digital transformation and sustainable development in the aviation industry [1][2]. Group 1: Project Launch and Implementation - The project was initiated on June 10, with five airlines under HNA Group joining China Aviation Oil to implement paperless fuel orders across 179 airports nationwide [1]. - This initiative expands the existing capabilities of Hainan Airlines, which was the first to adopt the paperless fuel order system [1]. Group 2: Digital Transformation and Innovation - China Aviation Oil is focusing on digital transformation and technological innovation to enhance its service offerings and operational efficiency [2]. - The successful implementation of the paperless fuel order system is attributed to a comprehensive top-level design that integrates business processes and technical architecture [2]. Group 3: Benefits and Future Directions - The paperless fuel order system significantly improves settlement efficiency, data accuracy, and reduces operational time for crew and fueling personnel, thereby enhancing flight punctuality [3]. - The initiative aligns with environmental policies and the trend towards green aviation, contributing to energy conservation and efficiency improvements in the industry [3].

Group 1 - The Shanghai Stock Exchange issued a review opinion letter regarding HNA Holding's major asset restructuring plan, which involves acquiring 100% equity of Tianyu Flight Training Co., Ltd. for a transaction price of 799 million yuan [1] - The accounts receivable balance of the target company at the end of 2024 was 419 million yuan, accounting for 9.77% of current assets, with accounts receivable representing 108.83% of operating income, an increase of 16.89 percentage points from the previous year [1] - The proportion of accounts receivable aged over one year reached 47.77%, an increase of 10.39 percentage points from the previous year, with significant increases in the 1-2 years, 3-4 years, and 4-5 years categories [1] Group 2 - In 2024, HNA Holding's revenue composition was 89.32% from passenger transport, 6.9% from other businesses, and 3.78% from cargo and excess baggage [2] - As of the report date, HNA Holding's market capitalization was 57 billion yuan [2]