Investment Rating - The report assigns a "Buy" rating to 中远海能 and 吉祥航空, and an "Outperform" rating to 南方航空, 中国东航, and 中国国航 [5][6]. Core Insights - The shipping sector is expected to see improved fundamentals in the medium to long term, driven by a shift in oil production policies from reduction to gradual increase, with VLCC demand projected to rise by 4.4% in 2025 and 6.9% in 2026 [3]. - The small container ship market is on an upward trend, supported by economic growth in Southeast Asia and changes in shipping alliances, leading to increased demand [3]. - The air travel market is experiencing a volume increase but a price decrease, with domestic passenger traffic expected to grow by 3% year-on-year in Q1 2025, while international markets are recovering steadily [3]. - The express delivery sector is seeing a recovery in direct logistics, with a year-on-year growth of 22.4% in the express industry for January-February 2025, although price competition remains intense [3]. - The road and rail sectors are expected to maintain growth in traffic volume, with a projected year-on-year increase in highway traffic and railway passenger volume [3]. Summary by Sections Shipping - The long-term supply logic remains stable, with a gradual increase in VLCC demand and a limited supply of new ships expected to be delivered [3]. - The average age of the global fleet is increasing, indicating a strong demand for replacing old ships [3]. Shipbuilding - The shipbuilding cycle is on an upward trend, with a continued supply-demand imbalance favoring shipbuilders [3]. - Ship prices are expected to rise again after absorbing the negative impacts of new capacity [3]. Aviation - The domestic air travel market is projected to see a volume increase but a price decrease due to high base effects from the previous year [3]. - International markets are recovering, with a 20% year-on-year increase in passenger traffic and flight numbers [3]. Express Delivery - The express delivery sector is expected to continue its recovery, with significant growth in logistics demand anticipated [3]. - Price competition remains fierce, impacting profitability for leading companies [3]. Road and Rail - Traffic volume on highways and railways is expected to grow, with specific companies projected to perform well [3].

Group 1 - The China Securities Index for Hong Kong, Shanghai, and Shenzhen interconnection logistics shows a recent performance with a 1.53% increase over the past month, a 3.20% decrease over the past three months, and a year-to-date decline of 3.20% [1] - The index is based on the comprehensive index samples and the China Securities 500 Index samples, reflecting the overall performance of securities listed in the interconnection range across the three markets [1] - The index's top ten holdings include companies such as Beijing-Shanghai High-Speed Railway (9.37%), SF Holding (6.77%), and COSCO Shipping Holdings (5.95%) [1] Group 2 - The industry composition of the index shows that railway transportation accounts for 18.28%, shipping for 17.98%, and express delivery for 16.64% [2] - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December [2] - In case of special circumstances, temporary adjustments to the index samples may occur, including the removal of companies that are delisted or undergo significant corporate changes [2]

Core Viewpoint - The Daqin Railway, a major coal transportation route in China, has commenced a 30-day spring maintenance operation to restore its facilities and ensure efficient energy transport for the upcoming summer peak demand [1][2]. Group 1: Maintenance Operation Details - The maintenance operation started on April 1 and will last until April 30, during which all trains will stop running from 9 AM to 12 PM daily [2]. - The operation includes comprehensive inspections and upgrades of tracks, sleepers, switches, ballast, power supply contact networks, signaling equipment, and communication cables [2]. - Specific tasks include replacing over 280 kilometers of rail, 117,000 sleepers, 127 sets of switches, and conducting extensive maintenance on 1,362 kilometers of track [2]. Group 2: Workforce and Equipment - A total of 130 construction teams have been formed by the Taiyuan Bureau of China Railway, with participation from 16 teams from eight other railway bureau groups, totaling nearly 20,000 personnel [2][4]. - The operation utilizes 70 sets of specialized machinery, including rail replacement vehicles and ballast cleaning machines, marking the highest historical investment in manpower and machinery for Daqin Railway maintenance [2][4]. Group 3: Operational Coordination - To manage the extensive workload and ensure safety, the Taiyuan Bureau established command centers along the railway for real-time coordination and problem-solving [4]. - Measures have been taken to minimize the impact on transportation, including rerouting some freight trains and strategically scheduling stops for other trains to facilitate maintenance [4]. Group 4: Importance of Daqin Railway - The Daqin Railway is a crucial channel for coal transportation in China, moving approximately 400 million tons of coal annually and serving major power grids, steel companies, and over 6,000 enterprises across 26 provinces [6].

新华财经太原4月1日电（记者许雄）"中国重载第一路"大秦铁路4月1日开始为期30天的春季集中修施 工，确保冬季电煤保供以来高负荷运转的线路设施设备迅速恢复性能状态，为迎峰度夏能源运输夯实基 础。 这次大秦铁路集中维修养护从4月1日开始，至4月30日结束，每天9时至12时全线列车停止运行，对线路 钢轨、轨枕、道岔、道砟及供电接触网、信号设备、通信光缆等进行立体式检修和更新升级。其间将完 成成段更换钢轨280多公里、成段更换轨枕11.7万根、成组更换道岔127组、大机清筛道床170多公里、 大机捣固线路1362公里、架设避雷线16.78条公里，还将完成桥隧检修、信号电缆迁改等任务。 大秦铁路西起山西大同，东至河北秦皇岛，是我国"西煤东运"主要通道，年运输能力超4亿吨。 （文章来源：新华社） 为保证施工优质高效推进，国铁太原局组建130支施工队伍，并邀请其他多个铁路局集团公司的16支队 伍参与，施工人员总数近20000人；同时，投用大型换轨车、清筛车、捣固车、闪光焊轨车等作业车70 组，长轨运输车、洒水车、隧道清污车等车列18列，多功能养路机械车234台，创下历年大秦铁路集中 修施工投入人力和机械车辆最高纪录。 为 ...

Core Viewpoint - The successful completion of the signal equipment renovation project at Zhuolu Station marks a new chapter in the intelligent operation and maintenance of the Daqin Railway, enhancing safety and efficiency in coal transportation [1] Group 1: Project Overview - The Daqin Railway is China's first double-track electrified heavy-haul railway, serving as a crucial energy corridor connecting Shanxi, Shaanxi, and the western Inner Mongolia coal region to the Bohai Bay port [1] - The railway accounts for approximately 20% of the national coal transportation volume, with an average of 52.7 trains carrying 20,000 tons of coal daily [1] Group 2: Engineering Details - The signal equipment renovation project primarily involved five stations: Datong, Yangyuan, Zhuolu, Shacheng East, and Beixinbao, with the renovation of Zhuolu Station and its adjacent signal equipment covering a total length of 51.05 kilometers, of which 6% consists of bridges and tunnels [1] Group 3: Impact on Operations - The completion of the signal equipment renovation project significantly improves the safety and efficiency of railway operations, ensuring smooth transportation along the "West Coal East Transport" corridor [1]

Core Viewpoint - Investing in high-dividend companies may be a direction to outperform the index in the short term, with a focus on state-owned enterprise dividend ETFs showing slight upward movement [1][2]. Group 1: ETF Performance - As of March 26, 2025, the China Securities State-Owned Enterprises Dividend Index (000824) decreased by 0.05%, with component stocks showing mixed performance [1]. - The State-Owned Enterprises Dividend ETF (159515) increased by 0.09%, with the latest price reported at 1.09 yuan [1]. - The latest scale of the State-Owned Enterprises Dividend ETF reached 51.1486 million yuan, marking a one-month high [2]. Group 2: Component Stocks - The top ten weighted stocks in the China Securities State-Owned Enterprises Dividend Index accounted for 15.22% of the index, with notable stocks including COSCO Shipping Holdings (601919) and Jizhong Energy (000937) [3]. - The performance of key stocks varied, with COSCO Shipping Holdings down by 0.68% and Shanxi Coal International up by 1.07% [5]. Group 3: Investment Strategy - East Asia Securities suggests that focusing on high-dividend companies based on fundamentals may lead to short-term outperformance [2]. - The report emphasizes the importance of monitoring market rhythm and industry progress, particularly in sectors like artificial intelligence and robotics, which are expected to see growth [2]. - Short-term investment opportunities are highlighted in marine economy, military industry, and consumer sectors with clear policy expectations [2].

Investment Rating - The report highlights the attractiveness of high dividend assets in the transportation industry under a low interest rate environment, suggesting a positive investment outlook for this sector [3][16]. Core Insights - The low interest rate environment enhances the value of dividend asset allocation, with transportation sector dividend yields exceeding current government bond yields as of February 28, 2024 [3][16]. - Policy guidance is encouraging long-term funds, such as insurance capital, to enter the market, increasing demand for high dividend assets [32]. - There is a valuation differentiation in the market, favoring companies in the highway and port sectors with stable earnings and high dividend ratios [48]. Summary by Sections Low Interest Rate Environment and Dividend Asset Allocation - The report emphasizes the significance of high dividend assets in a low interest rate context, with highway yields around 2%, shipping at approximately 2.7%, and ports at about 1.5% as of February 2024 [3][16]. - The report notes that the demand for high dividend assets is expected to rise due to the low interest rate cycle, which has led to a sustained low yield on ten-year government bonds [32]. Fund Flow Analysis - The report indicates that the scale of dividend products has significantly increased, with dividend ETFs showing the highest growth [36]. - The report mentions that the inflow of dividend ETFs has a positive impact on the stock prices of high dividend stocks in the transportation sector [37]. High Dividend Stocks in Transportation - The report lists key companies in the transportation sector with predicted dividend yields exceeding 3%, including Ninghu Expressway, Gansu Expressway, and Daqin Railway, among others [49][62]. - It highlights that the transportation sector's dividend ratios still have room for improvement compared to other industries [23].

本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述或者重大遗 漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 大秦铁路股份有限公司 大秦铁路股份有限公司 董事会 2025年3月8日 2025 年 2 月大秦线生产经营数据简报 2025年2月，公司核心经营资产大秦线完成货物运输量2766万吨，同比减少 0.50%。日均运量98.79万吨。大秦线日均开行重车62.5列，其中：日均开行2万 吨列车47.4列。2025年1-2月，大秦线累计完成货物运输量5745万吨，同比减少 7.67%。 股票代码：601006 股票简称：大秦铁路 公告编号：【临2025-028】 以上主要运营数据来自本公司内部统计。运营数据可能在月度之间存在一定 差异，其影响因素包括但不限于市场环境、设备检修和接卸能力等。 ...

Summary of Conference Call Notes Company and Industry Overview - The conference call discusses a railway company, specifically focusing on its coal transportation business and the broader coal industry in China. The company operates a significant railway line known as the "Daqin Line" which is crucial for coal transport from Shanxi to coastal regions. Key Points and Arguments 1. **Performance in Previous Year**: The company underperformed in a favorable dividend sector due to weak fundamentals, with monthly reading data showing a year-on-year decline. The large convertible bond issuance also diluted stock dividends and pressured stock prices after mandatory conversions at the end of the previous year [1][2][3]. 2. **Investment Opportunities**: The Daqin Line is considered a lagging stock with a decent dividend yield of around 4.5%, making it attractive for large accounts. The company is actively promoting its stock as a good investment opportunity [2][3]. 3. **Railway Infrastructure**: The company controls several railways, with a total mileage of 2,464.9 kilometers. The Daqin Line, built in 1992, is a dedicated coal transport line spanning 658 kilometers [3][4]. 4. **Coal Production and Consumption**: Major coal production areas in China are concentrated in Shanxi, Shaanxi, Inner Mongolia, and Xinjiang, accounting for approximately 82% of the country's coal output. The demand for coal is primarily from economically developed eastern and southern coastal regions [4][5]. 5. **Transport Capacity and Volume**: The Daqin Line is one of the four major coal transport corridors, with a coal transport volume of 392 million tons in 2024, representing 14% of the national railway coal transport volume [5][6]. 6. **Revenue Structure**: In the first half of 2024, freight business accounted for 73% of total revenue, with passenger services at about 10%. Investment income from associated companies contributed 14% to 20% of total profits [7][8]. 7. **Cost Structure**: The company faces high fixed costs, including labor and depreciation, which significantly impact profit volatility. The performance is closely tied to coal transport volumes [9][10]. 8. **Financial Health**: The company reported a cash flow of 17.246 billion yuan in 2023, indicating strong liquidity. However, revenue declined by 9% year-on-year in the first three quarters of 2024 due to reduced coal transport demand [12][13]. 9. **Impact of Policies**: Regulatory measures in Shanxi have led to significant coal production cuts, affecting transport volumes. The company anticipates a recovery in 2025 as these factors diminish [16][17]. 10. **Future Projections**: The company expects a rebound in coal transport volumes in 2025, driven by improved policies and reduced competition from imported coal. The projected revenue growth for freight services is estimated at 9% in 2025 [19][20][29]. 11. **Valuation and Investment Rating**: The company is currently undervalued compared to peers, with a projected price-to-book (PB) ratio of 0.95 in 2025. A conservative target price of 7.85 yuan per share is set, with a "buy" rating recommended [30]. Other Important Insights - The company has a significant amount of convertible bonds that may impact stock liquidity and pricing. The end of the convertible bond period is expected to relieve some pressure on stock prices [26][27]. - The company’s dividend policy remains robust, with a minimum payout ratio of 55% expected for 2023-2025, indicating a commitment to returning value to shareholders [27][28]. - The competitive landscape for coal transport is influenced by both domestic production and imports, with fluctuations in coal prices affecting overall profitability [19][21]. This summary encapsulates the key insights from the conference call, highlighting the company's operational performance, market dynamics, and future outlook within the coal transportation sector.

Investment Rating - The report assigns a "Buy" rating to the company for 2025, with a target price of 7.85 RMB based on a projected PB of 1.1x [3]. Core Views - The company is primarily a coal transportation railway company under the China Railway Group, with its core asset being the Daqin Line, which is crucial for coal transportation from Shanxi to eastern regions. The Daqin Line is expected to recover in volume due to increased coal supply efforts from Shanxi Province [1][2]. - The company's short-term freight rates are unlikely to increase, but the expected delisting of convertible bonds in February 2025 will reduce financial costs, supporting profit recovery [2]. - The company is considered a low-valuation dividend asset, with a commitment to a dividend payout ratio of no less than 55% from 2023 to 2025, and a historical dividend yield above 5% [2]. Summary by Sections Company Overview - The company operates 2465 kilometers of railway, with the Daqin Line being the main route for coal transportation, accounting for 14% of the national railway coal transport volume in 2024 [1][10]. - The company's revenue is primarily derived from freight, which constituted 73% of total revenue in the first half of 2024, while investment income from stakes in other railways contributed 17.7% to total profit [1][21]. Volume Recovery and Financial Cost Reduction - The Daqin Line's coal transport volume is expected to recover in 2025, with an anticipated increase of over 31 million tons due to supportive policies from the Shanxi government [1][44]. - The company’s financial costs are projected to decrease significantly after the convertible bonds are delisted, enhancing profitability [2][3]. Profit Forecast and Valuation - The forecasted net profit for 2024-2026 is 94.82 billion RMB, 112.78 billion RMB, and 119.86 billion RMB, with respective growth rates of -20.5%, 18.9%, and 6.3% [3][6]. - The company’s PB ratios for the same period are projected at 0.92, 0.95, and 0.92, indicating a strong recovery potential based on its asset quality and market position [3][6]. Investment Opportunities - The company is viewed as a low-valuation asset with strong recovery potential post-convertible bond delisting, which is expected to lead to a rebound in stock prices [2][3]. - The commitment to a high dividend payout ratio and historical performance in dividend yields positions the company favorably within the dividend-paying stock segment [2][3].