Core Insights - The continuous improvement of China's highway network is a key driver of economic activity and efficiency in transportation [2][1] - By the end of 2024, the total length of highways in China is expected to reach 549,000 kilometers, an increase of approximately 290,000 kilometers compared to the end of the 13th Five-Year Plan [2] - The highway network covers 99% of cities with populations over 200,000, facilitating significant regional connectivity [2] Group 1 - The Jiaxing Fruit Market in East China has seen an expansion in its trading radius due to the improved highway network, which has reduced transportation costs [1] - The average daily self-driving trips are projected to reach approximately 130 million, accounting for over 70% of inter-regional mobility [2] - 90% of county-level administrative centers can access highways within half an hour, enhancing regional accessibility [2] Group 2 - The coverage rate of charging stations in service areas has reached 98.4%, supporting the growing number of electric vehicles [2] - During peak travel times, measures are implemented to manage congestion, ensuring over 70 million vehicle passages in a single day [2] - The highway network is described as a "vital artery" for connecting regions, contributing to the overall vitality of transportation in China [2]

Group 1 - The report highlights the steady growth in highway traffic volume, with a focus on the valuation recovery of H-shares and the systemic revaluation of A-shares, recommending specific stocks such as Zhejiang Huhangyong, Wantong Expressway, and Ninghu Expressway [3][4][32] - The railway passenger transport sector is experiencing structural changes in customer demographics, leading to a stable growth outlook, with a shift in valuation logic from PE to DCF and EV/EBITDA [3][4][56] - The railway freight sector is benefiting from the transformation of logistics and adjustments in railway freight pricing policies, with steady growth in freight volume and turnover, although the growth rate remains low [3][4][75] Group 2 - The logistics industry is being empowered by AI, which enhances traffic efficiency through the integration of traffic data models and optimization algorithms, allowing leading companies to expand their market share [3][4][105] - The report notes that the number of vehicles in China has reached 353 million by 2024, reflecting a year-on-year growth of 10.31%, indicating a robust demand for transportation services [5][11] - The report discusses the ongoing digital transformation in the railway sector, aiming for comprehensive digitization and intelligent upgrades by 2027, which will enhance operational efficiency [107][108]