Investment Rating - The report recommends investing in SF Holding due to its valuation, operational resilience, and shareholder returns [2] - The report also recommends the aviation sector, specifically Air China and China Southern Airlines, due to expected profit elasticity from supply-demand optimization [4] Core Views - The express delivery industry saw a year-on-year growth of 15.8% in business volume in June, with SF Holding leading the growth [2] - The logistics sector is under pressure, particularly in hazardous materials logistics, but there is a push towards smart logistics, with Hai Chen Co. being recommended [3] - The aviation sector is experiencing robust growth, with Spring Airlines and China Eastern Airlines leading in RPK growth [4] - The shipping sector is facing challenges, with the CCFI index showing a significant year-on-year decline of 40.2% [5] Summary by Sections Transportation Market Review - The transportation index increased by 0.2% from July 12 to July 18, underperforming the Shanghai and Shenzhen 300 index by 0.8% [1][13] Express Delivery - In June, the national express delivery business volume reached 168.7 billion pieces, with a revenue of 126.32 billion yuan, marking a 9.0% year-on-year increase [2] - The average revenue per delivery decreased by 5.9% to 7.49 yuan [2] Logistics - The chemical products price index (CCPI) is at 4021 points, down 14.3% year-on-year [3] - Hai Chen Co. is recommended due to its strategic partnerships and improved demand in consumer electronics [3] Aviation - The average daily flights in China increased by 3.29% year-on-year, with domestic flights up by 1.89% [4] - RPK growth for major airlines shows significant increases, with Spring Airlines at +12% compared to 2024 [4] Shipping - The CCFI index is at 1303.54 points, down 0.8% week-on-week and down 40.2% year-on-year [5] - The BDI index increased by 29.9% week-on-week, indicating a recovery in dry bulk shipping [5][38] Road and Rail - The national highway freight traffic increased by 0.19% week-on-week, with a year-on-year increase of 0.82% [6][81] - The railway passenger turnover increased by 3.61% year-on-year, while freight turnover showed a slight decline [79]

Investment Rating - The report maintains a "Recommendation" rating for the transportation industry [2] Core Insights - The report highlights a significant growth in express delivery business volume, with a 19.3% increase in the first half of 2025, and anticipates a double-digit growth for the entire year [6][20] - The shipping sector shows improved market conditions, particularly in the dry bulk market, with rising freight rates and a positive outlook due to extended tariff grace periods between the US and China [6][16] - Infrastructure assets in Hong Kong are expected to see valuation improvements, with stable performance from leading highway assets and a focus on port assets as stable cash flow investments [6][18] - The aviation sector is experiencing a steady increase in passenger volume, although revenue performance remains under pressure due to competitive pricing [6][21] Summary by Sections Shipping - The dry bulk market is experiencing a rebound, with significant increases in freight rates for Panamax vessels and improved cargo volumes from Australia and South America [6][15] - The container shipping sector is facing mixed results, with some routes seeing rate declines while others remain stable due to port congestion [6][11] - The oil shipping market is expected to improve in Q3, with OPEC+ increasing production [6][14] Infrastructure - As of May 2025, national port cargo throughput reached 1.59 billion tons, a year-on-year increase of 4.4%, while container throughput grew by 5.4% [6][51] - The CR450 high-speed train is set to enter commercial operation by the end of 2026, promising enhanced operational efficiency and energy savings [6][17] - The report suggests that leading highway assets are entering a favorable investment zone with stable dividend expectations [6][18] Express Delivery - The express delivery sector is projected to grow over 20% in 2024, with a 15.8% year-on-year increase in June 2025 [6][19] - The report emphasizes the importance of regulatory changes to combat excessive price competition in the industry [6][20] - Major players in the express delivery market are showing varied growth rates, with SF Express leading in volume growth [6][19] Aviation - Passenger volume in civil aviation increased by 1.8% week-on-week and 3% year-on-year, indicating a recovery trend [6][21] - The report notes that while passenger numbers are rising, revenue performance is pressured by competitive pricing strategies [6][21] - Recommendations include focusing on major airlines like China Southern Airlines and Air China for potential investment opportunities [6][21] Logistics - The logistics sector is seeing fluctuations in cross-border air freight prices, with a 4% week-on-week increase in the TAC Shanghai outbound air freight price index [6][23] - The report highlights the potential for significant non-operating income for China National Foreign Trade Transportation Group in 2025 [6][23]

Core Points - The article highlights the increasing connectivity between Shanghai and Japan, particularly with the recent launch of new flight routes and the growing number of travelers from Shanghai to various Japanese cities [1][6][9] Group 1: Flight Connectivity - Eastern Airlines has expanded its routes, now offering direct flights from Shanghai to 20 cities in Japan, including less common destinations like Kumamoto and Matsuyama [7][8] - The airline operates 37 routes to Japan, with an average of 50 flights per day, indicating a significant increase in travel options for Shanghai residents [9][10] - The convenience of travel is emphasized, with flights to Kumamoto taking only about two hours, making it quicker than many domestic destinations [5][23] Group 2: Travel Demand - The demand for travel to Japan is evident, as shown by the overwhelming number of travelers at immigration counters in Kumamoto, which were insufficient to handle the influx [4][6] - In 2024, Japan issued over 7.19 million visas to foreigners, with more than 5.24 million granted to Chinese nationals, highlighting the strong interest from Shanghai residents [15][16] - Shanghai alone accounted for 246.7 million visas, representing 47% of the total issued to Chinese travelers, showcasing the city's significant role in Japan's tourism market [16][17] Group 3: Pricing and Competition - The competitive pricing of flights has made travel to Japan more accessible, with instances of last-minute tickets being cheaper than those purchased in advance [26][31] - Low-cost airlines like Spring Airlines have contributed to this trend, offering extremely low fares that make travel to Japan comparable to domestic trips [28][29] - The article notes that the price competition among airlines has created a situation where flights to Japan are treated like public transportation [31] Group 4: Travel Experience - Travelers from Shanghai appreciate the orderly and predictable pricing in Japan, contrasting it with domestic travel experiences [32][33] - The overall travel experience in Japan, including safety and cleanliness, is highlighted as a significant factor in the preference for Japanese destinations [33][34] Group 5: Future Prospects - The article suggests that there is still room for growth in flight routes from Shanghai to Japan, with airlines likely to continue expanding their offerings [40][42] - The easing of visa requirements for Chinese travelers has further encouraged travel to Japan, making it easier for Shanghai residents to visit [43][45] - The favorable exchange rate of the yen against the yuan has made travel to Japan more financially attractive, enhancing consumer willingness to travel [46][48]

Group 1: Company Listings - Shuanglin Co., Ltd. plans to issue H-shares and list on the Hong Kong Stock Exchange [1] - Yushu Technology has begun its listing guidance with CITIC Securities as the advisory firm, with the controlling shareholder holding 34.763% of the company [2] Group 2: Market Developments - A land parcel in Longgang, Shenzhen, originally acquired for 23.9 billion yuan is now being compensated at 6.8 billion yuan, representing a significant reduction [4] - The State Administration for Market Regulation has conducted talks with major food delivery platforms to ensure compliance with relevant laws and promote rational competition [4] Group 3: Corporate Responses and Events - Cha Yan Yue Se has apologized and removed a product after allegations of copyright infringement regarding packaging resembling a music album cover [5][6] - Cloudy Yihai was fined 7,000 Singapore dollars due to a food poisoning incident affecting ByteDance employees, leading to the permanent cessation of its company meal service [6] - Spring Airlines refuted claims regarding a flight incident, clarifying that the aircraft did not take off as reported [10] Group 4: Financing and Investments - Particle Technology completed a multi-million dollar B3 round of financing, with funds allocated for AI upgrades and various industry applications [15] - Kaimi Bio announced the completion of a nearly 170 million yuan Pre-A round financing to accelerate the development of therapeutic vaccines [17] - Bowtie, a virtual insurance company in Hong Kong, secured 70 million dollars in C round financing [18] Group 5: Strategic Partnerships and Collaborations - Xiaomi's payment subsidiary, Jiepay, increased its registered capital to 300 million yuan, indicating growth in its payment services [13] - Nvidia's CEO expressed interest in deepening cooperation with Chinese partners in the AI sector during a meeting with China's Minister of Commerce [12]

Group 1 - The auction of a damaged Nintendo Switch 2, which was accidentally stapled, raised $250,000 (approximately 1.794 million RMB) for charity [4] - The auction included four items, all confirmed by GameStop's CEO Ryan Cohen, including the damaged Switch 2, the stapler, and the original packaging [4] - The Switch 2's screen was repaired, and the auction proceeds will be donated to the Children's Miracle Network Hospitals [4] Group 2 - Shuanglin Co. announced plans to issue H-shares and list on the Hong Kong Stock Exchange [2] - Yushu Technology has begun its listing guidance with CITIC Securities as the advisory firm, with its major shareholder controlling 34.763% of the company [3] Group 3 - A significant land recovery plan in Shenzhen by Shimao Group involves reclaiming 12 plots of land originally acquired for 23.9 billion RMB, now valued at 6.8 billion RMB, representing a 70% decrease [5] - The State Administration for Market Regulation has urged food delivery platforms to engage in rational competition and comply with relevant laws [6] Group 4 - A new antiviral oral drug for influenza, Marcilosavir, has been approved for use in treating healthy adults with uncomplicated influenza [9] - The drug is developed by Zhengxiang Pharmaceutical and is effective against both influenza A and B viruses [9] Group 5 - Xiaomi's subsidiary, Jiepay Ruitong, has increased its registered capital from 100 million RMB to 300 million RMB [13] - The company focuses on internet payment and mobile payment services [13] Group 6 - KaiMi Biotech has completed a Pre-A round financing of nearly 170 million RMB, aimed at accelerating the clinical development of its therapeutic vaccines [17] - The funding was led by Guotou Chuangye and includes participation from other investors [17]

Core Viewpoint - Starting from July 15, 2025, Beijing Daxing International Airport will upgrade its domestic rapid transfer service, with Shouxin Ground Services Co., Ltd. taking full responsibility for the "D-D" re-checking service for domestic non-through passengers, aiming to enhance the efficiency and quality of the transfer experience for travelers [1][5]. Group 1: Service Upgrade - The "D-D" re-checking service will be fully managed by Shouxin Ground Services, which will leverage its expertise in aviation ground services to improve transfer efficiency and service quality through unified management and resource integration [1][5]. - Since its opening in 2021, the domestic rapid transfer area at Daxing Airport has implemented a "one-stop" service model, allowing passengers to check in and handle luggage without changing floors, saving an average of approximately 20 minutes in transfer time [5]. Group 2: Operational Improvements - The previous operation model, managed by multiple ground service agents, faced challenges such as resource dispersion and insufficient coordination during peak times, which hindered the ability to meet travelers' demands for efficient service [5]. - To ensure a smooth transition and seamless connection, Shouxin Ground Services has conducted thorough preparations, including deep business exchanges with related ground service companies and optimizing check-in processes based on historical operational data [5]. Group 3: Future Goals - Shouxin Ground Services aims to provide a "time-saving, hassle-free, and worry-free" ground service experience for transfer passengers at Daxing Airport, contributing to the airport's goal of becoming a world-class aviation hub [6].

Core Viewpoint - Spring Airlines celebrates its 20th anniversary and receives the first domestically produced Airbus A320 Level 5 flight training device from domestic aviation technology company Lite Technology, enhancing pilot training resources and ensuring safety operations [1][6]. Group 1: Equipment Details - The delivered Airbus A320 Level 5 flight training device is the first domestically produced product that meets high-standard configurations and is certified to the Airbus A320 Flight Training Device (FTD) Level 5 standard [3]. - The device features a modular design with separate layouts for the simulated cockpit, rear cabin, and visual system, utilizing Airbus's original data package to replicate the real cockpit environment 1:1 [3]. - It is equipped with a wide-angle visual system capable of simulating 300 system failure scenarios, meeting various training needs for crew members under normal procedures, emergency handling, and night flying conditions [3]. Group 2: Training and Cost Efficiency - The Airbus A320 Level 5 flight training device serves as an effective link and supplement to full-motion simulators and initial training devices, enhancing pilot proficiency while reducing training costs [5]. - Spring Airlines has invested 800 million yuan in establishing a flight training base in the Shanghai Free Trade Zone, which includes six full-motion simulators for the Airbus A320, with a seventh simulator expected by the end of the year [5]. Group 3: Collaboration and Development - The development of the flight training device involved the participation of Spring Airlines' pilots, who contributed their insights and experiences to ensure the training device closely resembles real flight scenarios [6]. - This collaboration signifies a new milestone for domestic flight training equipment and injects technological momentum into Spring Airlines' foundational training initiatives [6]. Group 4: Company Growth and Safety Commitment - Over the past 20 years, Spring Airlines has expanded from leasing to owning a fleet of 133 Airbus aircraft and has developed over 250 domestic and international routes, safely transporting 240 million passengers [6]. - The company emphasizes the importance of enhancing the professional capabilities and conduct of its pilot workforce as part of its talent strategy, committing to safety-first principles and rigorous training standards [7].

Core Viewpoint - The China Securities Index Transportation Industry Index has shown a slight decline over the past month but has increased over the last three months and year-to-date, indicating a mixed performance in the transportation sector [2]. Group 1: Index Performance - The China Securities Index Transportation Industry Index reported a decrease of 0.91% over the past month, an increase of 3.46% over the last three months, and a year-to-date increase of 0.05% [2]. - The index is designed to reflect the overall performance of different industry companies within the China Securities Index sample, categorized into various industry levels [2]. Group 2: Index Composition - The top ten weighted companies in the China Securities Index Transportation Industry Index are: SF Express (9.92%), Beijing-Shanghai High-Speed Railway (9.56%), COSCO Shipping Holdings (9.55%), Datong Railway (9.49%), Spring Airlines (4.07%), YTO Express (3.58%), China Merchants Energy Shipping (3.05%), Jianfa Holdings (2.8%), Wuzhou International (2.71%), and Blue Lithium (2.49%) [2]. - The index's holdings are primarily listed on the Shanghai Stock Exchange (73.43%) and the Shenzhen Stock Exchange (26.57%) [2]. Group 3: Industry Breakdown - The industry composition of the index includes: logistics (23.54%), shipping (23.29%), railway transportation (22.73%), express delivery (16.98%), air transportation (10.96%), road transportation (2.16%), and public transport (0.33%) [3]. - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December [3].

Core Viewpoint - The article addresses a false report regarding the incident involving Spring Airlines flight 9C7760 on July 15, clarifying that the aircraft did not take off and that safety protocols were followed during a mechanical issue [1] Group 1 - Spring Airlines confirmed that the flight was delayed due to traffic control reasons and experienced a temporary mechanical failure during taxiing [1] - The aircraft was returned to the terminal for passenger disembarkation, contradicting claims that it had taken off and faced an emergency landing [1] - The airline promptly replaced the aircraft, and the flight successfully departed at 22:45, ensuring passenger safety [1]

Group 1 - The core viewpoint of the article is that Spring Airlines has clarified misinformation regarding flight 9C7760, emphasizing their commitment to safety and timely communication with passengers [1] - On July 15, flight 9C7760 was delayed due to traffic control issues and experienced a temporary mechanical failure during taxiing, which was handled according to protocol [1] - The airline promptly replaced the aircraft, and the flight eventually took off at 22:45, successfully transporting passengers to their destination [1] Group 2 - Spring Airlines reiterated its principle of prioritizing safety and ensuring no risks are taken during flights [1] - The company expressed gratitude to passengers for their understanding and support regarding the flight delay [1]