Bank of China Securities·2025-06-16 08:27Investment Rating - The report rates the transportation industry as "Outperforming the Market" [1] Core Insights - The escalation of conflicts in the Middle East has raised concerns about risk premiums in the oil transportation market, while shipping rates on the US West Coast have significantly declined [2][13] - In May, China National Airlines reported an 8.4% year-on-year increase in passenger turnover, and Pudong International Airport saw a 13.03% increase in passenger throughput [2][15] - Cainiao has opened a new overseas warehouse in Canada, contributing to a 5.7% year-on-year increase in China's express delivery development index in May [2][22] Summary by Sections 1. Industry Hot Events - The Middle East conflict has led to a notable increase in oil prices, with WTI crude reaching $72.98 per barrel and Brent crude at $74.23 per barrel, indicating a rise in risk premiums for oil transportation [2][13] - The Ningbo Export Container Freight Index (NCFI) reported a decrease of 7.9% to 1536.8 points, with 13 out of 21 major routes experiencing declines. The US West Coast route saw a dramatic drop of 31.5% [2][14] - China National Airlines reported an 8.4% increase in passenger turnover for May, while Pudong International Airport's passenger throughput reached 7.0742 million, up 13.03% year-on-year [2][15][16] - Cainiao's new overseas warehouse in Canada enhances its logistics capabilities, contributing to a 5.7% increase in the express delivery development index [2][22][24] 2. Industry High-Frequency Data Tracking - The air cargo price index for Shanghai showed a year-on-year decrease of 5.0%, while the Baltic Air Freight Price Index decreased by 4.8% [25] - Domestic cargo flights decreased by 6.76% year-on-year in May, while international flights increased by 26.98% [32] - The SCFI index reported a 6.79% week-on-week decline, with a year-on-year drop of 38.20% [37] - The Baltic Dry Index (BDI) increased by 20.51% week-on-week, indicating a recovery in dry bulk shipping rates [41] 3. Investment Recommendations - The report suggests focusing on the equipment and manufacturing export chain, recommending companies such as COSCO Shipping, China Merchants Energy Shipping, and Huamao Logistics [4] - It highlights investment opportunities in the low-altitude economy, road and rail sectors, and the cruise and ferry segments, recommending companies like Sichuan Chengyu, Jiangxi Guangdong Expressway, and Bohai Ferry [4] - In the express delivery sector, it recommends companies such as SF Express, Jitu Express, and Yunda Express, while also suggesting attention to Zhongtong Express and Shentong Express [4]