Group 1 - A total of at least 18 A-share listed companies plan to distribute over 3.4 billion yuan (including tax) in cash dividends as of October 22 [1] - The active implementation of cash dividend plans by listed companies enhances investors' sense of gain and increases attention to dividend-related assets [1] - Short-term dividend sectors are expected to become a safe haven for funds, with investors encouraged to consider low-cost entry to enhance allocation certainty, particularly in sectors such as banking, coal, electricity, and transportation [1] Group 2 - The low-volatility dividend ETF fund tracks the CSI Low Volatility Dividend Index and offers the lowest comprehensive fee level for ETFs tracking this index [2]

Core Viewpoint - Multiple A-share listed companies are actively announcing cash dividend plans during the third quarter reporting period, with at least 18 companies planning to distribute over 3.4 billion yuan in total cash dividends, enhancing investor sentiment and interest in dividend-related assets [1][2]. Group 1: Dividend Announcements - Kaisheng New Materials plans to distribute 0.50 yuan per 10 shares, totaling approximately 21.03 million yuan, with a net profit of 116 million yuan for the first three quarters, representing a year-on-year increase of 121.56% [1]. - Wens Foodstuff Group intends to distribute 3 yuan per 10 shares, amounting to approximately 1.994 billion yuan, based on a total share count of 6.646 billion shares after excluding repurchased shares [2]. - Yanjing Beer plans to distribute 1 yuan per 10 shares, totaling approximately 282 million yuan, with a net profit of 1.77 billion yuan for the first three quarters, reflecting a year-on-year growth of 37.45% [2]. Group 2: Market Sentiment and Investment Strategy - The active cash dividend announcements are expected to enhance investor sentiment and interest in dividend-related assets, especially as external factors suppress risk appetite, leading to a high volatility state in the A-share market [2][3]. - Analysts suggest that the dividend sector may serve as a safe haven for funds, with a focus on sectors such as banking, coal, electricity, railways, and ports [2][3]. - The recent pullback in the TMT sector has led to a recommendation for investors to shift their focus towards consumer and dividend sectors, as the dividend sector shows a strong negative correlation with market risk appetite [3].

Investment Rating - The investment rating for the transportation industry is "Positive" (maintained) [3] Core Views - The express logistics sector is experiencing resilient demand, with a "de-involution" trend driving up express prices, enhancing corporate profitability. The long-term outlook for e-commerce express logistics is positive due to healthy competition [3][13] - The shipping sector is expected to benefit from the OPEC+ production increase and the Federal Reserve's interest rate cuts, with a notable improvement in VLCC freight rates anticipated in Q4 2025 [13] - The aviation industry is seeing stable demand growth, with supply chain issues leading to increased costs for airlines. The overall passenger demand is projected to grow by 10.4% in 2024, outpacing capacity growth [9][14] Summary by Sections Express Logistics - In September 2025, major express companies reported improved performance, with YTO, Shentong, and Yunda achieving business volumes of 2.627 billion, 2.187 billion, and 2.110 billion pieces, respectively, representing year-on-year growth of 13.64%, 9.46%, and 3.63% [3][27] - The average revenue per piece for these companies also saw increases, indicating a trend of rising prices in the express delivery sector [3][27] Shipping and Ports - The implementation of new port fees between China and the US is expected to create a dual market structure, granting strategic pricing power to compliant shipping capacities [5] - China has secured pricing power for iron ore, marking a significant shift in global commodity trade dynamics [6] - The Shanghai Container Freight Index (SCFI) rose by 12.9% week-on-week, indicating a positive trend in shipping rates [7] Aviation - The International Air Transport Association (IATA) reported that supply chain bottlenecks are delaying aircraft production, leading to increased costs for airlines, estimated to exceed $11 billion in 2025 [9] - Chinese airlines collectively oppose the US Department of Transportation's proposed flight restrictions, highlighting concerns over operational impacts [10] Road and Rail - National logistics operations were reported to be running smoothly, with significant increases in highway freight traffic [12] - The National Development and Reform Commission plans to enhance electric vehicle charging infrastructure along highways by 2027 [12] Overall Market Performance - From October 13 to October 17, 2025, the transportation sector index increased by 0.73%, outperforming the Shanghai Composite Index, which fell by 1.47% [18]

Investment Rating - The report recommends "Buy" for SF Holding based on valuation, operational resilience, and shareholder returns [2]. Core Views - The express delivery sector is expected to see a year-on-year growth of approximately 12% in business volume and 7% in revenue for September [2]. - The logistics sector is benefiting from improved demand, with a recommendation for Haicheng Co. due to its focus on smart logistics [3]. - The airline sector is projected to experience a rebound in ticket prices due to supply constraints and improved demand, with recommendations for China National Aviation and China Southern Airlines [4]. Summary by Sections Transportation Market Review - The transportation index increased by 0.7% from October 11 to October 17, outperforming the Shanghai Composite Index by 3.0% [1][13]. Express Delivery - The total express delivery volume for the week of October 6 to October 12 was approximately 3.626 billion pieces, with a month-on-month increase of 10.99% and a year-on-year increase of 16.0% [2]. - Major express companies like SF, Yunda, and YTO saw year-on-year growth rates of 31.8%, 3.6%, and 13.6% respectively [2]. Logistics - The chemical product price index decreased by 12.5% year-on-year, while the domestic shipping price for liquid chemicals was 161 RMB/ton, down 5.90% year-on-year [3]. - The report highlights the operational resilience of Haicheng Co. in the logistics sector [3]. Airline and Airport - The average daily flight volume increased by 3.64% year-on-year, with domestic flights up by 2.26% [4]. - The new winter-spring flight schedule for 2025 indicates a 1.6% decrease in domestic flight volume compared to the previous year [4]. - Brent crude oil prices decreased by 2.3% week-on-week, while domestic aviation kerosene prices were 5632 RMB/ton, up 0.5% [4][70]. Shipping - The export container freight index (CCFI) was 973.11 points, down 4.1% week-on-week and down 28.8% year-on-year [5]. - The report notes a short-term increase in shipping rates due to supply disruptions caused by U.S. port fee countermeasures [5]. Road and Rail - The total number of trucks passing through highways increased by 5.58% week-on-week, although the year-on-year figure decreased by 15.88% [6][83]. - The report indicates that the dividend yield of major road operators is higher than the yield of China's ten-year government bonds, suggesting good value in the sector [6].

Core Insights - The shipping sector is experiencing a slowdown in oil shipping rates due to reduced holiday shipments, while container shipping rates on long-distance routes are rebounding [3] - Shenzhen has introduced detailed policies to support low-altitude economic development, with international flight routes expected to resume during the 2025 National Day and Mid-Autumn Festival holidays [3] - China's express delivery volume is projected to reach 1.5 trillion packages 37 days earlier than expected in 2025, with YTO Express signing a strategic cooperation agreement with Huizhou City [3] Shipping Sector - The China Import Crude Oil Comprehensive Index (CTFI) was reported at 1407.48 points on October 9, down 26.2% from September 25 [3] - VLCC market activity has cooled significantly post-holiday, with total transaction volumes well below weekly averages [3] - The market for transatlantic and Gulf of Mexico routes has also seen a decline in shipping rates, with a temporary stabilization in rates observed as post-holiday shipping resumes [3] - On October 10, the market rate for shipping from Shanghai to European ports was $1,068 per TEU, up 10.0% from the previous period [3] - Rates for shipping from Shanghai to the West and East coasts of the U.S. were $1,468 per FEU and $2,452 per FEU, reflecting increases of 0.5% and 2.8% respectively [3] Aviation Sector - Shenzhen's transportation bureau has released measures to support the high-quality development of the low-altitude economy, effective from October 9, 2025, to December 31, 2026 [3] - During the 2025 National Day and Mid-Autumn Festival holidays, it is expected that 19.138 million passengers will be transported by civil aviation, with a daily average of 2.392 million, marking a 3.2% year-on-year increase [3] - International airlines are projected to operate over 2,000 international passenger flights daily, a year-on-year increase of 11.1% [3] Logistics and New Transportation Models - As of October 11, 2025, China's express delivery volume is expected to exceed 1.5 trillion packages, achieving this goal 37 days ahead of schedule compared to 2024 [3] - A strategic cooperation agreement was signed between the Huizhou Municipal Government and YTO Express for the construction of a supply chain hub in the Guangdong-Hong Kong-Macao Greater Bay Area [3] Industry Trends - The Baltic Air Freight Index has shown a month-on-month increase but a year-on-year decline [5] - The domestic shipping index has risen, along with dry bulk shipping rates [5] - In August 2025, express delivery volume increased by 12.29% year-on-year, with revenue up by 4.24% [5] - The average number of international flights in the first week of October 2025 was 1,940, a slight decrease of 0.16% month-on-month but an increase of 13.44% year-on-year [5] - From September 29 to October 5, the number of freight trucks on national highways was 44.137 million, a decrease of 27.55% month-on-month [5] Investment Recommendations - Companies in the equipment and manufacturing export chain are recommended for attention, including COSCO Shipping, China Merchants Energy Shipping, and Huamao Logistics [6] - Opportunities related to transportation demand driven by hydropower station construction in the lower reaches of the Yarlung Tsangpo River are highlighted, with a focus on Sichuan Chengyu, Chongqing Port, and Fulimin Transportation [7] - Investment opportunities in the low-altitude economy are suggested, particularly in CITIC Offshore Helicopter [7] - The highway and railway sectors are also recommended for investment, including Gansu Expressway, Beijing-Shanghai High-Speed Railway, and others [7] - The cruise and ferry sectors are noted for potential investment opportunities, with a focus on Bohai Ferry and Straits Shares [8] - E-commerce and express delivery sectors are highlighted, recommending SF Express, Jitu Express, and Yunda Express [8] - Investment opportunities in the aviation industry are suggested, focusing on Air China, China Southern Airlines, Spring Airlines, and others [8]

Investment Rating - The investment rating for the transportation industry is "Positive" (maintained) [4] Core Views - The current demand in the e-commerce express delivery sector is resilient, and the "anti-involution" trend is driving up express delivery prices, releasing profit elasticity for companies. Long-term positive competition opportunities are expected in the e-commerce express delivery sector. Companies like SF Express and JD Logistics are likely to benefit from cyclical recovery and ongoing cost reductions, with potential for both performance and valuation increases [13] - In the shipping sector, the outlook for crude oil transportation is favorable due to the OPEC+ production increase cycle and the Federal Reserve's interest rate cuts. The geopolitical uncertainties in the Middle East may enhance VLCC freight rate elasticity. The shipping market is expected to improve significantly in Q4 2025, with recommendations to focus on companies like China Merchants Energy Shipping and COSCO Shipping Energy [13] - The shipbuilding sector is in the early stages of a green renewal cycle, with shipping market conditions and green renewal progress being the core demand drivers. Despite a decline in new ship orders, shipyards remain busy. Factors constraining new ship market activities are expected to ease or improve, suggesting a potential profit realization period for shipbuilding companies [14] Summary by Sections Express Delivery - The express delivery industry is experiencing a significant increase in business volume, with a year-on-year growth of 12.3% in the number of packages delivered [24] - Major companies like YTO Express and SF Express are showing strong growth in business volume, with SF Express achieving a remarkable 34.8% year-on-year increase [26] Shipping - The current week saw a slight increase in the Clarkson comprehensive freight rate to $28,977 per day, while the BDI index decreased by 4.3% to 1,941 points [44] - The crude oil transportation index (BDTI) decreased by 2.5% to 1,084 points, indicating a slight downturn in the market [44] Aviation - In August 2025, global air passenger demand grew by 4.6%, with a load factor of 86.0%, marking a historical high for the month [10] - The overall passenger transport volume for civil aviation reached approximately 75 million, reflecting a year-on-year increase of 3.3% [55] Logistics - The logistics sector is seeing a positive trend, with companies like Debon Logistics and Aneng Logistics showing significant improvements in profitability due to strategic transformations and ecosystem optimizations [15] Ports - The total cargo throughput at Chinese ports reached 272.175 million tons, with a week-on-week increase of 4.69% [71] - Container throughput also saw an increase of 8.84%, indicating a robust performance in the port sector [71]

Investment Rating - The report maintains an "Overweight" rating for the transportation industry, indicating a positive outlook compared to the overall market performance [12]. Core Insights - The report highlights a recovery in profits for the express delivery sector driven by anti-competition policies, with an expected increase in prices leading to improved profitability for companies like Shentong Express and YTO Express [5][6]. - The shipping sector is experiencing strong demand, particularly for oil tankers, with historical high freight rates observed in August and September 2025. The report anticipates continued demand growth due to OPEC+ production increases and a release of pent-up inventory demand [5]. - The shipbuilding industry is in a phase of profit release as high-priced orders are being delivered, with a strong demand for replacing old vessels. The report notes that the implementation of the 301 policy is expected to stimulate order volumes and ship prices [5]. - The airline sector is projected to see significant improvements in operational performance due to increased capacity and a recovery in international travel, with major airlines like China Eastern Airlines and Southern Airlines expected to benefit [5][6]. - The report also indicates that the highway and railway sectors are likely to maintain growth in traffic volumes, with improvements in railway freight performance anticipated due to the retraction of previous freight rate reductions [5]. Summary by Sections Shipping - Oil tanker freight rates reached historical highs in August and September 2025, with a projected 14% decline in VLCC market rates for Q3, while Cape-sized bulk carriers are expected to see a 19% increase in rates [5]. - The report recommends companies such as China Merchants Energy Shipping and China Merchants Heavy Industry, highlighting the strong demand and supply constraints in the sector [5]. Shipbuilding - The shipbuilding industry is characterized by a tight supply-demand balance, with ongoing demand for replacing old vessels. The report suggests that the implementation of the 301 policy will positively impact order volumes and ship prices [5]. - Recommended companies include China Shipbuilding Industry Corporation and China State Shipbuilding Corporation, which are expected to benefit from the current market dynamics [5]. Airlines - The airline sector is entering a peak travel season with increased capacity and improved passenger flow. The report anticipates significant operational improvements for major airlines due to favorable external factors such as lower oil prices [5][6]. - Companies like China Eastern Airlines and Spring Airlines are highlighted as key beneficiaries of this trend [5]. Express Delivery - The express delivery sector is expected to see a recovery in profits due to rising prices and reduced competition. The report notes a 12.3% year-on-year growth in express delivery volume in August 2025 [5]. - Recommended companies include Shentong Express and YTO Express, which are expected to benefit from the ongoing price increases [5]. Highway and Railway - The report forecasts growth in highway traffic and railway passenger and freight volumes, with a notable increase in railway freight performance expected in Q3 2025 [5]. - Recommended companies include Zhejiang Huhangyong and Beijing-Shanghai High-Speed Railway, which are expected to perform well in the current environment [5].

Investment Rating - The investment rating for the transportation industry is "Positive" (maintained) [4] Core Views - The express delivery industry is experiencing resilient demand, with a shift towards "quality over quantity" leading to price increases, which will enhance corporate profitability. Companies like SF Express and JD Logistics are expected to benefit from cyclical recovery and cost reduction [4][13] - The shipping sector is anticipated to benefit from the OPEC+ production cycle and the Federal Reserve's interest rate cuts, with a notable improvement in the oil transportation market expected in Q4 2025 [13] - The aviation industry is projected to see long-term demand growth due to macroeconomic recovery, with short-term ticket booking data indicating a rebound [13] Summary by Sections Express Delivery - The express delivery sector is witnessing a significant price increase, with over 90% of regions in China experiencing price hikes, which is expected to improve profitability for companies [4] - Key companies to watch include YTO Express, Shentong Express, Zhongtong Express, and SF Express, all of which are positioned to benefit from the industry's positive trends [13] Shipping and Shipbuilding - The shipping sector is expected to see a cyclical recovery, particularly in oil transportation due to OPEC+ production increases and geopolitical uncertainties enhancing VLCC rate elasticity [13] - The shipbuilding market is in a green transition phase, with new orders expected to improve as market conditions stabilize [13] Aviation - The aviation sector is experiencing low supply growth with increasing demand, leading to a favorable long-term outlook. Companies like China Southern Airlines and Air China are highlighted for their potential [13][14] Logistics and Ports - The logistics sector is seeing a positive trend with companies like Shenzhen International and Debon Logistics expected to benefit from improved competition and operational efficiencies [13] - Port operations are stable, with a focus on cash flow and growth potential in hub ports like China Merchants Port and Qingdao Port [13]

Investment Rating - The report assigns a "Buy" investment rating for the company, indicating an expected price increase of over 15% relative to the CSI 300 index within the next six months [11]. Core Insights - The company reported a revenue of 3.105 billion yuan for the first half of 2025, representing a year-on-year growth of 13.17%. The net profit attributable to shareholders was 663 million yuan, up 7.68% year-on-year [5]. - The company's highway operation business is stable, with toll revenue increasing by 2.23% year-on-year. The construction service revenue saw a significant increase of 72.63%, contributing to the overall revenue growth [5][6]. - The company is the only publicly listed highway operator in Henan Province, managing a total of 808 kilometers of highways [5]. - The investment income from subsidiaries has been growing, with a reported investment income of 331 million yuan in 2024, a 158.80% increase year-on-year [7]. - The company has optimized its debt structure, resulting in a reduction of financial expenses by 18.75% to 373 million yuan in the first half of 2025 [9]. Summary by Sections Financial Performance - For the first half of 2025, the company achieved a basic earnings per share of 0.27 yuan, a year-on-year increase of 9.15%. The weighted average return on equity was 5.16%, up 0.2 percentage points from the same period in 2024 [5]. - The operating cash flow for the first half of 2025 was 1.146 billion yuan, a significant increase of 30.51% year-on-year [8]. Business Operations - The company is expected to benefit from the growth of the highway network in Henan Province, with the total operational mileage projected to exceed 10,000 kilometers by 2025 [6]. - The company has diversified its business operations, with significant contributions from construction services and real estate sales [5]. Future Projections - The company is projected to achieve net profits of 937 million yuan, 1.009 billion yuan, and 1.116 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding earnings per share of 0.42, 0.45, and 0.50 yuan [11].

Group 1: Express Delivery Industry - The Anhui Provincial Express Association has launched an initiative to resist "involution" competition, aiming to promote high-quality development in the industry and maintain market order [1][7] - Starting from September 15, 2025, express delivery prices in Anhui Province will increase by no less than 0.2 yuan per ticket, which is expected to help close the price gap in central and eastern regions of China [1][7] - The express delivery business volume in Anhui Province accounted for 3.6% of the national total from 2024 to July 2025, indicating significant regional influence [1] Group 2: Shipping and Maritime Industry - The VLCCTD3cTCE rate surged to $82,674 per day, a 34.13% increase from the previous week, indicating a strong demand in the shipping market as the peak season approaches [2] - The attack on Russia's largest oil loading port in the Baltic Sea could lead to a 24% reduction in Russian oil exports, which may further boost VLCC short-term demand and pricing [3] - The outlook for VLCC rates is optimistic, with potential to reach $200,000 per day during the peak season, driven by OPEC+ production increases and tightening supply [2][3] Group 3: Aviation Industry - Airline ticket prices have shown a positive trend since August 13, with significant year-on-year growth observed in early September, driven by increased passenger volume and business travel recovery [4][7] - The aviation sector is expected to benefit from macroeconomic recovery, with a long-term supply-demand imbalance likely to enhance the sector's performance [8] Group 4: Logistics and Infrastructure - National logistics operations have been running smoothly, with rail freight volumes reported at 79.04 million tons from September 1 to September 7, despite a slight decrease [5][6] - The National Development and Reform Commission is encouraging the submission of REITs projects in mature asset types, including toll roads and clean energy, to enhance infrastructure investment [6] Group 5: Investment Opportunities - In the express delivery sector, companies like YTO Express, Shentong Express, and ZTO Express are expected to benefit from improved market conditions and operational efficiencies [7][8] - In the shipping industry, companies such as China Merchants Energy and COSCO Shipping are recommended due to favorable market conditions and potential demand growth [8] - The aviation sector presents investment opportunities in companies like China Southern Airlines and HNA Group, which are positioned to benefit from the recovery in air travel demand [8]