SINOLINK SECURITIES·2025-04-20 11:24Investment Rating - The report recommends investing in the express delivery sector, specifically highlighting SF Holding due to its valuation, operational resilience, and shareholder returns [3]. Core Insights - The express delivery business volume increased by 20.3% year-on-year in March, while the single ticket revenue decreased by 8.2%. The total revenue for the express business is projected to reach 124.6 billion yuan by March 2025, with a year-on-year growth of 10.4% [3]. - The logistics sector is under pressure with domestic shipping prices for liquid chemicals down by 11.2% year-on-year. The report recommends Hai Chen Co. for its focus on smart logistics and strategic partnerships [4]. - The aviation sector benefits from low international oil prices, which could enhance airline profits. The report recommends investing in the airline sector, particularly China National Aviation and Southern Airlines [5]. - The shipping sector shows mixed signals, with the BDTI index increasing by 2.6% week-on-week, while the CCFI index for export container shipping remains under pressure [6]. Summary by Sections Transportation Sector Overview - The transportation index rose by 0.2% from April 12 to April 19, underperforming the Shanghai and Shenzhen 300 index, which increased by 0.6% [2][13]. Express Delivery - In March, the express delivery business volume reached approximately 38.13 billion pieces, with a week-on-week increase of 10.8% and a year-on-year increase of 21.3%. The average single ticket revenue was 7.48 yuan, down 8.2% year-on-year [3]. Logistics - The China Chemical Products Price Index (CCPI) is at 4032 points, down 14.3% year-on-year. The report highlights the revenue growth of Milkrun and Hai Chen Co. for 2024, with Milkrun's revenue expected to rise by 24.3% [4]. Aviation - The average daily flight volume in China increased by 3.11% year-on-year, with international flights showing a significant growth of 23.9%. The Brent crude oil price is currently at $67.96 per barrel, down 24.51% year-on-year [5]. Shipping - The CCFI index for export container shipping is at 1110.94 points, down 6.4% year-on-year, while the SCFI index is at 1370.58 points, down 22.5% year-on-year. The BDTI index for oil transportation is at 1152 points, up 1.6% year-on-year [6][38]. Road and Rail - National railway passenger volume in March was 337 million, up 4.9% year-on-year, while road freight volume increased by 5.7% year-on-year [84][87].