HTSC·2026-01-05 02:46Investment Rating - The report maintains an "Overweight" rating for the transportation industry [2] Core Views - The report highlights a significant year-on-year increase in travel demand during the New Year holiday period, attributed to a low base effect from the previous year [6] - The aviation sector is expected to benefit from limited supply growth, rising ticket prices, and improved profitability due to favorable oil prices and currency exchange rates [9] Summary by Sections Travel Demand Growth - During the 2026 New Year holiday, cross-regional travel reached 595 million trips, averaging 198 million trips per day, with a year-on-year growth of 19.62% [6] - Rail travel saw the highest growth at 52.6%, while civil aviation grew by 10.4% and intercity buses by 20.8% [6] Aviation Sector Insights - Civil aviation passenger volume reached 5.88 million during the holiday, with a daily average of 1.96 million, reflecting a 10.4% increase year-on-year [6] - Average domestic economy class ticket prices rose to 684.6 yuan, showing a recovery trend after a decline in the previous year [6] Road and Rail Travel - Road travel accounted for 540 million trips, with a daily average of 18 million, marking a 15.7% increase year-on-year [7] - Rail travel demand remained strong, with an estimated 48.09 million trips during the holiday, reflecting a 52.7% year-on-year increase [8] Investment Recommendations - The report recommends focusing on the aviation sector for 2026, anticipating strong performance during the Spring Festival and sustained demand growth in the medium to long term [9] - Key stocks recommended include Huaxia Airlines, Spring Airlines, and China Southern Airlines, all rated as "Buy" with target prices set for 2026 [5][12]