Investment Rating - The report maintains a "Buy" rating for the company [10]. Core Views - The company is expected to return to its historical growth trajectory due to several factors: 1) Short-term: The pilot shortage is gradually being resolved, leading to improved aircraft utilization [2][8]. 2) Mid-term: Significant subsidies for regional airlines are expected to provide a safety net amid industry downturns, with a focus on underdeveloped regions benefiting from new subsidy policies [2][8]. 3) Long-term: The company aims to leverage partnerships with mainline carriers to monetize regional traffic through joint products, utilizing excess capacity from mainline airlines [2][8]. Summary by Sections Introduction: The "Running Ahead" Mystery of Overseas Regional Airlines - Regional airlines are essential in large countries, acting as vital transportation links across vast territories, with North America holding a 55% market share globally [20][21]. Strong Monopoly: Low-Cost Supply Creates Dominant Structure - The regional airline market has significant growth potential due to its vast geographical coverage and the unique demand characteristics that differentiate it from mainline carriers [6][53]. Stability: Meeting Demand and Transferring Risks - Regional airlines exhibit stable long-term profitability akin to utility companies, effectively managing demand fluctuations and operational costs through strategic agreements with mainline carriers [7][53]. The Alpha of Huaxia Airlines: Turning Point Approaches - Huaxia Airlines, as a leading regional carrier in China, benefits from government support and a focus on cost-effective operations, positioning it for substantial growth in the coming years [8][7]. Investment Recommendations: Restarting Growth - The company is projected to achieve net profits of 700 million, 1 billion, and 1.21 billion yuan from 2025 to 2027, with corresponding P/E ratios of 15.8X, 11.0X, and 9.1X [2][8].

Investment Rating - The report maintains a positive investment rating for the transportation industry, highlighting potential opportunities in various segments such as shipping, infrastructure, aviation, and express delivery [2][4]. Core Insights - The report emphasizes the improvement in oil shipping market conditions and the potential for price increases in the express delivery sector, driven by a reduction in price competition due to "anti-involution" policies [1][8][24]. Shipping - The oil shipping industry is experiencing improved market conditions, with OPEC+ planning to increase production by 548,000 barrels per day in September, which may lead to better freight rates in the second half of the year [8][16]. - Container shipping rates have declined, necessitating close monitoring of US-China trade negotiations [8][12]. - The report suggests focusing on companies with strong Q2 performance, such as德翔海运, 海丰国际, 中谷物流, and 中远海特 [8][16]. Infrastructure - The report notes that highway passenger traffic decreased by 4.0% year-on-year in June 2025, while cargo traffic showed a slight decline [18][55]. - Port cargo throughput increased by 4.8% year-on-year, indicating stable growth in the infrastructure sector [18][55]. - The report recommends investing in leading highway and port companies, such as 招商公路, 皖通高速, 唐山港, and 青岛港, due to their attractive dividend yields [20][55]. Express Delivery - The express delivery sector is projected to maintain a growth rate of over 20% in 2024, with a 19.3% increase in business volume in the first half of 2025 [24][68]. - The report highlights the initiation of price increases in the express delivery sector in South China, which is expected to alleviate price competition and support valuation recovery [24][68]. - Recommended companies in this sector include 中通快递-W, 圆通速递, 申通快递, and 韵达股份 [24][68]. Aviation - The report indicates a 1.9% week-on-week increase in passenger traffic, with domestic ticket prices experiencing a year-on-year decline of 5.4% [25][26]. - The aviation sector is expected to benefit from "anti-involution" measures aimed at reducing excessive competition, which may enhance valuation recovery [25][26]. - Recommended airlines include 中国国航, 南方航空, 吉祥航空, 春秋航空, and 华夏航空 [26].

Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the **express delivery and logistics industry** in China, with a focus on the impact of recent regulatory changes and market dynamics on various companies within the sector [1][2][3]. Core Insights and Arguments - **Price Increases in Express Delivery**: The express delivery industry is witnessing initial success in reversing the trend of price undercutting, with multiple regions experiencing price hikes due to severe losses among franchisees and regulatory pressure for market stability. This price increase is expected to be more sustainable compared to the isolated price hikes in Yiwu in 2021, benefiting from the upcoming peak demand season [1][6][7]. - **Recommendations for E-commerce Delivery Companies**: Companies with strong service quality and cash flow, such as **ZTO Express** and **YTO Express**, are recommended. Additionally, **J&T Express** is highlighted for its competitive position in Southeast Asia, while **SF Express** is noted for its stable high-end service business [1][8]. - **Cross-border E-commerce Logistics**: The volume of air cargo to the U.S. has recovered to 70% of pre-tariff levels, which is better than expected. Eastern Airlines Logistics is performing well with high load factors, and despite a decrease in freight rates, the situation remains favorable. A dividend yield of 4.7% suggests a potential investment opportunity if tariffs improve or volumes increase [1][9]. - **Airline Sector Performance**: The airline sector is experiencing weak ticket prices but good passenger volumes. The fundamentals are well-reflected, and factors like oil prices and exchange rates may provide benefits. **Huaxia Airlines** is recommended due to its leading position in regional aviation and improved subsidy standards, which enhance profit certainty [1][23]. - **Rail Freight Outlook**: **Tielong Logistics** is favored due to its special container business benefiting from equipment upgrades and strong synergy with upstream steel companies. The potential for profit elasticity exists due to the ongoing reversal of price undercutting [1][21][22]. Additional Important Insights - **July Performance of the Transportation Sector**: The overall transportation sector saw a decline of 0.2%, underperforming the CSI 800 index by 4.2 percentage points. Sub-sectors like airports, shipping, and logistics performed relatively well, with increases of 4.3%, 2.4%, and 1.2%, respectively [2]. - **Market Sentiment and Future Recommendations**: The call suggests a continued focus on companies benefiting from the reversal of price undercutting in express delivery, core assets in aviation and express sectors, and stocks in cross-border logistics with potential catalysts from mid-year earnings reports [3]. - **Logistics Sector Performance**: The logistics sector saw a 1.2% increase, with road freight leading at 5.9%. Cross-border logistics rose by 3.3%, while express delivery only increased by 0.6%, reflecting market skepticism about the sustainability of the recovery [5]. - **Future Trends in Container Shipping**: Container shipping rates have shown a downward trend in July, with expectations of continued pressure in August due to high base effects and tariff impacts. The overall volume is expected to stabilize, but rates may continue to decline [12]. - **Air Cargo Market Dynamics**: The air cargo market is expected to maintain low supply levels, particularly for long-haul routes, while domestic airlines are enhancing their logistics capabilities. Positive outcomes from U.S.-China negotiations could serve as a catalyst for growth [30]. - **Investment Recommendations for Airport Stocks**: The airport sector is advised to focus on companies with stable earnings and high dividend yields, especially in light of recent performance and potential geopolitical events that could impact market conditions [15][31]. This summary encapsulates the key points discussed in the conference call, providing insights into the current state and future outlook of the express delivery and logistics industry.

Market Performance - The aviation and airport sector increased by 0.23% on August 7, with Shenzhen Airport leading the gains [1] - The Shanghai Composite Index closed at 3639.67, up 0.16%, while the Shenzhen Component Index closed at 11157.94, down 0.18% [1] Individual Stock Performance - Shenzhen Airport (000089) closed at 7.24, up 1.54% with a trading volume of 148,200 shares and a turnover of 107 million yuan [1] - Xiamen Airport (600897) closed at 14.86, up 0.68% with a trading volume of 24,100 shares and a turnover of 35.68 million yuan [1] - Spring Airlines (601021) closed at 52.86, up 0.63% with a trading volume of 29,000 shares and a turnover of 153 million yuan [1] - China Eastern Airlines (600115) closed at 3.83, up 0.52% with a trading volume of 446,600 shares and a turnover of 171 million yuan [1] - China Southern Airlines (600029) closed at 5.74, up 0.35% with a trading volume of 265,100 shares and a turnover of 152 million yuan [1] - China National Aviation (601111) closed at 7.28, up 0.28% with a trading volume of 548,700 shares and a turnover of 26.66 million yuan [1] Capital Flow Analysis - The aviation and airport sector experienced a net outflow of 3.73 million yuan from institutional investors and 5.50 million yuan from speculative funds, while retail investors saw a net inflow of 9.23 million yuan [2] - The capital flow for individual stocks shows that China Southern Airlines had a net inflow of 111.51 million yuan from retail investors, while Xiamen Airport had a net outflow of 342,000 yuan from institutional investors [3]

Core Viewpoint - The tourism industry is experiencing a shift from growth to efficiency, where companies must enhance cost, structure, and scenario effectiveness to convert competitors' declines into their own gains [1] Duty-Free Industry - China Duty Free Group (中国中免) reported a net profit of 259,324.91 thousand yuan for the first half of 2025, a significant decrease of 6.4% from 323,770.03 thousand yuan in the same period last year [7] - The decline is attributed to pressures on Hainan's offshore duty-free sales, outbound consumption diversion, and intensified market competition [7] - Despite challenges, China Duty Free's market share increased by nearly 1 percentage point year-on-year, and inventory turnover improved by 10% [7] Hotel Industry - Jin Jiang Hotels (锦江酒店) expects a net profit of 39,000 to 41,000 thousand yuan for the first half of 2025, showing slight growth from 38,851.52 thousand yuan year-on-year [10] - The growth is driven by a light-asset operation model that effectively reduced cost pressures, despite the absence of similar revenue items as in the previous year [10] - In contrast, Nanjing Tourism (南京商旅) anticipates a net profit of 550 to 850 thousand yuan, a notable decline from 1,028.37 thousand yuan, primarily due to underperformance in its tourism service segments [10] Airline Industry - Major state-owned airlines, including China Southern Airlines, China Eastern Airlines, and Air China, are projected to incur losses ranging from 175,400 thousand to 240,000 thousand yuan, 160,000 thousand to 210,000 thousand yuan, and 180,000 thousand to 240,000 thousand yuan respectively, although losses are narrowing compared to the previous year [11] - The losses are attributed to imbalances in market supply, a downward shift in customer demographics, competition from high-speed rail, and uncertainties in the international environment [11] - Conversely, Huaxia Airlines (华夏航空) expects a profit of 20,000 to 28,000 thousand yuan, a significant increase from 1,255.50 thousand yuan, benefiting from improved demand in civil aviation and optimized route structures [11] Regional Tourism - Qinhuai Scenic Area (秦淮风光) reported a net profit of 4,299.41 thousand yuan, down from 5,037.84 thousand yuan, due to decreased consumer spending and visitor numbers [14] - Daming Cruises (大美游轮) achieved a net profit of 2,454.81 thousand yuan, slightly down from 2,850.74 thousand yuan, with operational metrics showing stable performance despite minor declines in average ticket prices and hotel occupancy rates [15] - Tengxuan Tourism (腾轩旅游) reported a loss of 523.59 thousand yuan, nearly unchanged from the previous year's loss, impacted by reduced income from air freight and domestic ticket commissions [15] Hong Kong Tourism - Hong Kong China Travel Service (香港中旅) reported a loss of 0.70 billion HKD, a reversal from a profit of 0.63 billion HKD, primarily due to investment property impairments [16] - Despite a 12% increase in total visitors to Hong Kong, the company faces challenges from reduced group tours and rising operational costs [16] Cultural and Sports Equipment - Dafen Industrial (大丰实业) expects a net profit of 6,423 to 7,252 thousand yuan, a significant increase from 4,144.08 thousand yuan, driven by strong demand for technology solutions in cultural and tourism sectors [17]

华夏航空8月6日股价报8.50元，与前一交易日持平。当日成交量为118484手，成交额达1亿元，振幅 1.41%。 来源：金融界 8月6日主力资金净流出1158.43万元，占流通市值0.11%。近五日主力资金净流出5963.44万元，占流通 市值0.55%。 风险提示：航空运输业受宏观经济、油价波动、市场竞争等因素影响较大，投资者需注意相关风险。 华夏航空属于航空机场板块，是国内支线航空运输企业。公司主要经营国内支线航空客货运输业务，构 建了以支线航线网络为核心的航空运输体系。 公司暑运计划执行航线211条，通达国内138个城市及2个国际城市，新开32条航线，加密8条航线。上半 年公司预计归母净利润为2.2亿元至2.9亿元，同比增长741.26%至1008.93%。 ...

Investment Rating - The report maintains an "Overweight" rating for the transportation sector [8] Core Views - The express delivery sector is expected to see significant profit recovery due to an early price increase trend, while the aviation sector is still at the bottom of the economic cycle, with potential for mid-term improvements in supply and demand [1][2][3] Summary by Sections Express Delivery - In June, the retail sales and express delivery volumes showed year-on-year increases of 5.3% and 15.8% respectively, although the growth rate has slowed compared to May [3] - The price increase trend has started in core grain-producing areas, which could lead to significant profit recovery for express delivery companies if this trend spreads across all price ranges [3][10] - Key companies recommended include ZTO Express, YTO Express, and Shunfeng Express [10] Aviation - The summer travel season has shown weak performance, with domestic ticket prices declining by 7.5% year-on-year, despite a slight increase in passenger load factor [2][16] - The aviation sector is currently at a low point, but improvements in supply growth and demand could enhance profitability in the medium term [26] - Recommended stocks include China National Aviation and Huaxia Airlines, which are expected to benefit from supply-demand improvements [26] Logistics - The logistics sector is experiencing an early price increase in express delivery, and the bulk supply chain is expected to recover alongside rising commodity prices [3][65] - The cross-border e-commerce logistics sector is showing resilience as tariff impacts diminish [3] Shipping and Ports - In July, shipping rates for container shipping and oil transport declined, while dry bulk shipping rates increased due to seasonal demand [35][36] - The report anticipates stable supply-demand dynamics in August, with shipping rates expected to remain volatile [35] Road and Rail - The road transport sector is under pressure due to rising risk preferences and potential impacts from upstream industry dynamics [5] - Rail transport is expected to see flat growth in passenger traffic during the summer, with ongoing observations needed for the impact of upstream industry changes [5]

Core Insights - The summer travel season has seen a significant increase in passenger flow at Shanghai ports, with July recording 23,000 inbound and outbound flights and 3.673 million passengers, marking year-on-year growth of 10.5% and 11.8% respectively [1] Industry Overview - The civil aviation sector is experiencing a positive cycle of volume and price, with high passenger load factors expected to drive ticket prices upward [2] - In July, the total number of passenger flights operated by civil aviation reached 524,000, averaging 16,900 flights per day, a year-on-year increase of 3.5%. Domestic flights grew by 2.2%, while international flights surged by 14.1% [3] - Major airlines are increasing their international flight capacity, with China Eastern Airlines expanding routes to Istanbul, Cairo, and other destinations, resulting in a 22% year-on-year increase in international and regional flights [3] Company Performance - Xiamen Airport reported a revenue of 991 million yuan, a 7.1% increase year-on-year, and a net profit of 219 million yuan, up 15.41%. The airport handled 14.3164 million passengers in the first half of the year, a 5.96% increase, with international passenger numbers rising by 15.51% [4] - Huaxia Airlines plans to operate 211 routes during the summer travel season, reaching 138 domestic cities and 2 international cities, with a projected net profit increase of 741.26% to 1008.93% year-on-year [5] Market Trends - The regional aviation market is expected to continue growing rapidly, driven by the economic development of smaller cities and increasing consumer demand for air travel [6] - The passenger load factor for regional routes was 77.3%, which is 8.7 percentage points lower than that of trunk routes, but both types of routes saw improvements compared to the same period in 2024 [7] - The summer travel season is characterized by a significant increase in passenger load factors, with a shift in customer demographics towards leisure travelers, impacting ticket pricing strategies [8]

华夏航空最新一期业绩显示，截至2025一季报，公司营业总收入17.74亿元、同比增长9.78%，归属净利 润8197.68万元，同比增长232.31%，扣非净利润7590.25万元，同比增长399.10%，流动比率0.796、速动 比率0.762、资产负债率83.91%。 金融界消息 截至2025年8月5日收盘，华夏航空（002928）报收于8.5元，上涨0.35%，换手率0.83%，成 交量10.57万手，成交金额8984.42万元。 资金流向方面，今日主力资金净流出1017.57万元，占比成交额11.33%。其中，超大单净流出639.97万 元、占成交额7.12%，大单净流出377.60万元、占成交额4.2%，中单净流出流入502.66万元、占成交额 5.59%，小单净流入514.91万元、占成交额5.73%。 通过天眼查大数据分析，华夏航空股份有限公司共对外投资了35家企业，参与招投标项目383次，知识 产权方面有商标信息268条，专利信息9条，此外企业还拥有行政许可22个。 天眼查商业履历信息显示，华夏航空股份有限公司，成立于2006年，位于贵阳市，是一家以从事航空运 输业为主的企业。企业注册资本12 ...

Summary of Key Points from Conference Call Records Industry or Company Involved - **Industries**: Rental, Express Delivery, Aviation, Chemical, Cobalt, Coal - **Companies**: China Shipbuilding Leasing, Bank of China Aviation Leasing, Jitu, Shentong, Zhongtong, Yunda, SF Express, Huaxia Airlines, China Shenhua, Huayi Chemical, Wanhua, Hualu, Yangnong, Satellite Chemical, New Chemical, Huayou Cobalt, Likin, Shengtun, Jiayou International Core Points and Arguments 1. **U.S. Labor Market Impact**: The U.S. labor market data has raised expectations for a 25 basis point rate cut in September, increasing the likelihood to 75%, which is favorable for leasing companies like China Shipbuilding Leasing and Bank of China Aviation Leasing [1][2] 2. **Express Delivery Industry**: The political bureau meeting focused on capacity governance rather than production governance, which is expected to accelerate the anti-involution in the express delivery industry. Price increases are anticipated in regions like Yiwu and Guangdong, with recommended companies including Jitu, Shentong, Zhongtong, Yunda, SF Express [1][4] 3. **Aviation Industry Challenges**: Despite efforts to combat market involution, the aviation industry faces skepticism regarding joint price increases due to high transparency of data. Recommended stocks include Huaxia Airlines and major A-share airlines [1][5] 4. **Chemical Industry Trends**: The chemical sector is experiencing a bottoming out, with PPI showing continuous negative growth. However, prices for certain chemicals like epoxy chloropropane and lithium carbonate are rising due to downstream replenishment [1][8][10] 5. **Cobalt Market Tightness**: The cobalt market is experiencing supply tightness, with prices expected to average 250,000 yuan/ton this year. Companies like Huayou Cobalt and Likin are recommended for investment [1][19][20] 6. **Coal Industry Developments**: China Shenhua's acquisition of National Energy Group assets is expected to enhance its strength and positively impact the coal sector. Current coal prices remain strong despite recent declines in stock performance [1][22][23] Other Important but Possibly Overlooked Content 1. **Chemical Industry Profitability**: The chemical industry saw a revenue growth of 1.4% in June 2025, but profit growth was negative at -9%, indicating a widening profit decline despite revenue increases [1][12] 2. **Market Sentiment in Chemical Sector**: The increase in Penghua Chemical ETF shares by 1.1 billion yuan indicates a growing market interest in the chemical sector, despite it being at a relative bottom compared to other cyclical sectors [1][13] 3. **Potential for Price Stabilization**: The possibility of production limits in the chemical sector could help stabilize prices, as seen in past successful interventions [1][16] 4. **Investment Opportunities in New Materials**: Companies like Dongcai Technology and Xinzhou Bang are highlighted as key players in the new materials sector, particularly in the high-performance resin supply chain [1][17] 5. **Gold and Silver Market Dynamics**: Recent trends show that while industrial metals have risen, precious metals like gold have not seen similar increases, suggesting potential investment opportunities in gold stocks [1][18]