Investment Rating - The report maintains a "Recommended" rating for the transportation industry, emphasizing the timely allocation of transportation dividend assets [1]. Core Insights - The resilience of highway performance is highlighted, with a notable inflection point in bulk commodity performance. The report indicates that the transportation sector is currently experiencing a favorable investment environment [1]. Summary by Sections Highway: Stable Growth in Toll Revenue and Resilient Performance - In the first three quarters of 2025, the overall toll revenue of listed highway companies remained stable, with a year-on-year increase of 2.4% [4][7]. - The net profit growth rate for the highway sector in Q3 2025 was 7.1%, with notable performers including Ganyue Expressway (+64.7%) and Zhongyuan Expressway (+43.8%) [10][11]. - Current dividend yields for highway companies as of October 31, 2025, show Sichuan Chengyu at 5.1%, followed by Guangdong Expressway A and Shandong Expressway at 4.5% each [17][18]. Port: Slight Recovery in Bulk Cargo and Mixed Overall Performance - In Q3 2025, the total cargo throughput of national ports increased by 5.8% year-on-year, with container throughput rising by 5.2% [19][21]. - The port industry achieved a net profit of 97.9 billion yuan in Q3 2025, a decrease of 7.4% year-on-year, with Liaoport Co. leading in performance growth at +37.5% for the first three quarters [25][27]. - Current dividend yields for major ports include Tangshan Port at 5.0% and Qingdao Port at 3.7% [17][18]. Railway: Improvement in Q3 Performance - The railway sector showed a sequential improvement in Q3 2025, with key companies like Beijing-Shanghai High-Speed Railway reporting a net profit of 39.86 billion yuan, up 8.96% year-on-year [11][12]. - Current dividend yields for railway companies include Daqin Railway at 4.7% and Beijing-Shanghai High-Speed Railway at 2.3% [17][18]. Bulk Supply Chain: Continuous Recovery in Operating Environment - Xiamen Xiangyu reported a significant net profit increase of 443.17% in Q3 2025, indicating a strong upward trend [4][28]. - Xiamen Guomao turned profitable in Q3 2025, reflecting a stabilization in operations despite a year-on-year decline of 18.94% in the first three quarters [4][28]. Investment Recommendations - The report suggests a continued positive outlook for A/H shares in transportation dividend assets, emphasizing the importance of industrial logic and valuation elasticity [4]. - Key recommendations include Sichuan Chengyu and Wuhu Expressway for highways, and Tangshan Port and Qingdao Port for ports, highlighting their strong dividend yields and growth potential [4].

Investment Rating - The report maintains a "Recommendation" rating for the transportation industry [3] Core Viewpoints - The transportation industry is expected to experience steady growth in H1 2025, with an emphasis on the investment value after market corrections [2] - The report highlights the underperformance of dividend assets in July 2025, which lagged behind the CSI 300 index and the transportation index [6][11] - The report suggests a focus on long-term investment value in transportation dividend assets, driven by industry logic and valuation elasticity [6] Industry Basic Data - Total number of stocks: 122 - Total market capitalization: 33,240.61 billion - Circulating market capitalization: 28,359.48 billion [3] Monthly Market Performance - From July 1 to July 18, 2025, the transportation industry rose by 0.52%, underperforming the CSI 300 index by 2.59 percentage points [10] - Year-to-date, the transportation industry has decreased by 1.31%, lagging behind the CSI 300 index by 4.46 percentage points [10] - Specific performance of dividend assets from July 1 to July 18: - Expressways: -0.02% - Railway transportation: -2.23% - Ports: 0.36% [11] Market Environment - The report notes a low interest rate environment, with the 10-year government bond yield at 1.67% as of July 18, 2025 [22] - Daily average transaction volume for highways increased by 18.9% year-on-year, while ports saw a significant increase of 65.5% [25] Industry Data Highways - Passenger volume in May 2025: 985 million, down 2.6% year-on-year - Freight volume in May 2025: 3.681 billion tons, up 1.7% year-on-year [31] Railways - Passenger volume in June 2025: 373 million, up 3.7% year-on-year - Freight volume in June 2025: 43.8 million tons, up 2.2% year-on-year [50] Ports - Port cargo throughput in the last four weeks (June 16 - July 13, 2025): 1.058 billion tons, up 5.1% year-on-year [59] Investment Recommendations - The report recommends focusing on highway assets with high dividend yields, such as Sichuan Chengyu Expressway, and emphasizes the potential for growth in the highway sector [6] - For ports, it suggests investing in companies like China Merchants Port and Qingdao Port, which are expected to see stable growth [6] - In the railway sector, it highlights the potential of key assets like Beijing-Shanghai High-Speed Railway and Daqin Railway [6]

Core Viewpoint - The transportation sector is expected to outperform the CSI 300 index in April 2025, with long-term value in transportation assets and attractive dividend yields post-correction [1][2]. Monthly Market Performance - From April 1 to April 18, 2025, the transportation sector declined by 0.1%, outperforming the CSI 300 index by 2.85 percentage points. The performance of sub-sectors includes: highways at -0.61%, railway transportation at +5.09%, and ports at -2.82% [2]. - The interest rate environment remains low, with the 10-year government bond yield at 1.65%, down 16 basis points from 1.81% on March 31, 2025 [2]. - Trading volumes across sectors have rebounded, with significant increases in average daily trading volumes: highways at 2.91 billion yuan (up 29.8% year-on-year), railways at 2.41 billion yuan (up 14.28% year-on-year), and ports at 5.23 billion yuan (up 224.7% year-on-year) [2]. Industry Valuation - In terms of historical PE percentiles, railways are the highest among major dividend asset sub-sectors, while public utilities are the lowest. For PB historical percentiles, highways rank highest, and electric equipment ranks lowest. The overall dividend yield for highways, railways, and ports is in the range of 3%-4%, with coal and banks leading [3]. Capital Operations - Anhui Expressway (600012) has raised 5.22 billion HKD through a private placement to Anhui Transportation Holding Group [4]. Industry Data - The first quarter of 2025 is expected to show good growth in highway toll revenues, with recent port throughput data unaffected by tariffs. For highways, passenger traffic in January-February 2025 was 1.862 billion trips (down 0.2% year-on-year), while freight volume reached 5.765 billion tons (up 5.7% year-on-year) [5]. - In March 2025, railway passenger volume was 337 million trips (up 4.9% year-on-year), while freight volume was 44.5 million tons (up 2.4% year-on-year) [5]. - Port throughput data shows a total of 1.048 billion tons in the past four weeks (up 4.5% year-on-year), with a cumulative total of 3.883 billion tons year-to-date (up 3.8% year-on-year) [6]. 2024 Annual Report Highlights - For highways, the top five companies by performance growth are: Sichuan Chengyu (601107) (+22.91%), Ninghu Expressway (600377) (+12.09%), and others. The top five by cash dividend ratio include: Guangdong Expressway A (70%) and others. The corresponding dividend yields as of April 18, 2025, are led by Sichuan Chengyu (5.12%) [7]. - For ports, the top five companies by performance growth are: China Merchants Port (001872) (+26.44%) and others. The corresponding dividend yields are led by Tangshan Port (4.72%) [7].