Shenwan Hongyuan Securities·2025-12-07 09:34Investment Rating - The report maintains a positive outlook on the transportation industry, with specific recommendations for companies such as China Shipping, COSCO Shipping Energy, and others in the shipping sector [6][4]. Core Insights - The report highlights the recovery in shipping rates, particularly for VLCCs, which have seen a rise in one-year charter rates to $58,000 per day. It suggests that investors should capitalize on seasonal fluctuations in freight rates [6][4]. - The report emphasizes the strong performance of the road freight sector, which has shown a significant increase of 6.90% in the latest week, outperforming other sub-sectors [7][8]. - The aviation sector is expected to experience a golden era due to rising passenger volumes and constrained supply, with recommendations for several airlines including China Eastern Airlines and Spring Airlines [6][4]. Summary by Sections Shipping - VLCC average rates reached $115,290 per day, despite a 6% week-on-week decline. The market remains tight, with expectations of increased cargo volumes leading to potential rate increases [6][4]. - The report notes a 2% increase in second-hand bulk carrier prices and a slight uptick in new ship prices, indicating a potential turning point in the market [6][4]. Road Freight - The road freight sector has shown resilience, with a reported increase in freight volume of 0.74% week-on-week, indicating steady growth [7][8]. - The report identifies Dragon Boat Holdings as a standout performer in the road freight sector, with a significant weekly gain of 40.2% [13]. Aviation - The report anticipates a significant improvement in airline profitability due to increased international travel and a historical high in passenger load factors [6][4]. - Recommendations include major airlines such as China Southern Airlines and Cathay Pacific, which are expected to benefit from these trends [6][4]. Express Delivery - The express delivery sector is entering a new phase of competition, with expectations of price stabilization and profit recovery. Companies like YTO Express and ZTO Express are highlighted as key players [6][4]. Rail and Highway - Rail freight and highway truck traffic are projected to maintain steady growth, with the report noting a slight decrease in highway truck traffic of 0.24% week-on-week [6][4]. - The report suggests that high-dividend investment strategies in the highway sector remain attractive [6][4].