Investment Rating - The report maintains a "Recommended" rating for the transportation industry [2] Core Insights - The report highlights the acquisition of Daniao Logistics by Shentong, emphasizing the focus on the express delivery and civil aviation sectors to mitigate internal competition [1] - The express delivery sector is expected to see a demand growth of over 20% in 2024, with a 19.3% increase in business volume in the first half of 2025 [23] - The report suggests that the "anti-involution" policy may ease price competition and facilitate valuation recovery in the express delivery industry [23] Summary by Sections Shipping - The dry bulk market is showing signs of improvement, with a focus on the impact of the US-China trade talks on the shipping sector [6] - The report notes that the shipping rates for the East US route have decreased by 6.5% this week, while the European route has seen a slight increase of 0.5% [10][11] - The report recommends monitoring companies such as COSCO Shipping and Yang Ming Marine Transport [6] Infrastructure - The report indicates that the yield on 10Y and 30Y government bonds is 1.7% and 2% respectively, suggesting that there is still value in dividend assets [18] - It highlights the stable performance of leading highway assets and recommends stocks like China Merchants Highway and Anhui Expressway [18] Express Delivery - The express delivery business volume reached 16.87 billion pieces in June 2025, reflecting a year-on-year growth of 15.8% [19] - The report mentions that Shentong's acquisition of Daniao Logistics is expected to enhance market share and optimize competition [22] - The report emphasizes the potential for valuation recovery due to the "anti-involution" policy and the easing of price competition [23] Aviation - The report notes a decrease in passenger traffic due to adverse weather conditions, with a 1.4% drop in the week of July 18-24 [24] - It highlights the importance of the "anti-involution" policy in the aviation sector, which aims to stabilize competition and improve valuations [25] - Recommended stocks include Air China and China Southern Airlines [25] Logistics - The report states that the average daily traffic at the Ganqimaodu port increased by 16.6% week-on-week [26] - It mentions that the logistics company China National Foreign Trade Transportation Group is expected to confirm significant non-recurring gains from asset sales [26]

Investment Rating - The transportation sector has shown a positive trend with a 3.2% increase in the transportation index, outperforming the Shanghai Composite Index by 1.5% during the week of July 19-25, 2025 [1][12]. Core Insights - The transportation sector's fund holdings increased to 32.5 billion yuan, a 17.0% rise compared to the previous quarter, with a market share of 1.95% [2]. - The express delivery segment saw a significant year-on-year growth of 15.8% in June, with SF Express 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 a steady recovery, with a 3% increase in domestic passenger volume in June compared to the previous year [4]. - The shipping sector is stabilizing, with the Baltic Dry Index (BDI) increasing by 10.9% week-on-week, indicating a positive trend in dry bulk shipping [5][34]. Summary by Sections Transportation Market Review - The transportation index rose by 3.2%, with the airport sector showing the highest increase of 5.6% [1][12]. Industry Fundamentals Tracking Shipping and Ports - The export container freight index (CCFI) was 1261.35 points, down 3.2% week-on-week and down 40.9% year-on-year [20]. - The domestic container freight index (PDCI) increased by 1.1% week-on-week, indicating a slight recovery in domestic shipping [28]. Aviation and Airports - The average daily flights reached 16,945, a 3.68% increase year-on-year, with domestic flights up by 2.51% [4]. - The introduction of a new ticket purchasing feature on the airline service platform is expected to enhance customer experience [4]. Rail and Road - National highway freight traffic increased by 0.67% week-on-week, with a year-on-year increase of 2.01% [6][76]. - The railway passenger volume in June was 373 million, a 3.61% increase year-on-year [73]. Express Delivery - The express delivery business volume reached 16.87 billion pieces in June, with a notable increase in the market share of SF Express [2][44].

Core Insights - The ALL-DC-SHIPS project aims to revolutionize ship power systems through a full direct current (DC) architecture, providing efficient and low-carbon energy solutions for the maritime industry [1][2] - The project has received €10.2 million in funding from the EU's Horizon Europe program and is set to officially launch in February 2025, with a duration of 3.5 years until July 2028 [1][3] - Key technological advancements include the development of new DC-DC converters and solid-state circuit breakers, which are expected to reduce power losses and improve generator efficiency [3][5] Project Overview - The project involves collaboration among 12 partners from 8 European countries, focusing on the design and deployment of a full DC power system for maritime applications [1][7] - The project will validate the full DC grid concept on a 3,000-ton dredger and explore applications in cruise ships [5][6] Technological Advancements - The project will develop three critical components: a new ship-certified silicon carbide DC-DC converter for a 1000V DC main grid, a high-efficiency DC-DC converter for a 400V DC secondary grid, and a new solid-state DC circuit breaker [3][5] - The full DC architecture is expected to lower fuel consumption by 5%-10% and reduce power losses by 15%-30% compared to traditional systems [6][7] Industry Implications - The project highlights the importance of integrating low-carbon energy and storage solutions in maritime transport to achieve decarbonization [6][7] - The collaboration between academia and industry is crucial for advancing new technologies and ensuring their practical application in the maritime sector [8]

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - The foundation of economic recovery needs to be consolidated, and domestic demand restoration still requires policy support. Attention should be paid to the policy signals released by the Politburo meeting in July [1]. - The property market shows a weak performance, and the supply - demand sides are both weak. In the second half of the year, more active property - easing policies may be needed to release the demand for improved housing [2][3]. - The commodity futures market is generally rising, with black - series, new - energy materials, and building materials leading the gains. The "anti - involution" policy strengthens the supply - side contraction expectation and drives the industry valuation repair [7][106]. 3. Summary by Relevant Catalogs 3.1 Demand: New home sales increase month - on - month, and automobile consumption shows marginal improvement - New home sales: The transaction area of 20 - city commercial housing increased by 22% month - on - month and decreased by 7% year - on - year as of the week ending July 25. Second and third - tier cities had larger increases in new home sales, while first - tier cities decreased by 7% [13]. - Second - hand home sales: Among the monitored key cities, Beijing and Shanghai's second - hand home transaction areas increased by 4% and 3% month - on - month respectively, while Shenzhen and Hangzhou decreased by 13% and 15% [33]. - Automobile consumption: The average daily retail sales of passenger cars increased by 22.4% month - on - month and 14.3% year - on - year as of the week ending July 25. The national movie box office increased by 39.0% month - on - month, but was weaker than the same period last year. The national migration scale index decreased by 2.2% month - on - month [42]. 3.2 Production: Industrial production runs smoothly, and infrastructure construction starts remain strong - Mid - and upstream: As of the week ending July 25, the Tangshan blast furnace operating rate remained at 80.4%, the rebar operating rate rose by 1.0 pct to 43.9%, the PTA operating rate remained at 80.8%, the polyester filament operating rate in Jiangsu and Zhejiang decreased by 0.8 pct to 92.1%, and the petroleum asphalt plant operating rate decreased by 4.0 pct to 28.8% [49]. - Downstream: The operating rates of automobile all - steel tires and semi - steel tires decreased month - on - month, but the semi - steel tire operating rate was still at a seasonal high [49]. 3.3 Investment: Apparent consumption of rebar improves, and rebar prices continue to rise - Rebar: As of the week ending July 25, the apparent consumption of rebar increased by 5.0% month - on - month to 217 tons, and the rebar price increased by 4.3% month - on - month to 3433.2 yuan/ton [64]. - Cement: As of the week ending July 25, the cement price decreased by 1.9% month - on - month to 105.9 points. As of the week ending July 18, the cement shipping rate increased by 0.8 pct to 40.9%, and the cement inventory ratio increased by 0.8 pct to 62.3% [64]. 3.4 Trade: Port throughput increases, and export container shipping prices decline - Export: As of the week ending July 25, port container throughput increased by 2.6% month - on - month, higher than the same period last year. The CCFI composite index decreased by 3.2% month - on - month. The BDI index continued to rise, increasing by 10.9% month - on - month [73]. - Import: The CICFI composite index decreased by 0.5% month - on - month [6]. 3.5 Prices: Agricultural product prices decline, and black - series products lead the gains - CPI: The agricultural product wholesale price 200 index decreased by 0.2% month - on - month as of the week ending July 25. Pork, egg, and vegetable prices increased, while fruit prices decreased [7]. - PPI: The Nanhua industrial product price index increased by 4.2% month - on - month. Brent crude oil spot price decreased by 1.1% month - on - month, COMEX gold futures price increased by 1.3% month - on - month, and LME copper spot price increased by 2.4% month - on - month [7]. - Commodity futures: Polysilicon futures settlement price increased by 17.5%, industrial silicon futures settlement price increased by 9.0%, coking coal futures settlement price increased by 28.9%, coke futures settlement price increased by 13.8%, glass futures settlement price increased by 21.1%, and PVC futures settlement price increased by 6.5% [106]. 3.6 Interest - rate Bond Tracking: The cumulative issuance progress of replacement bonds this year exceeds 94% - Next week (July 28 - August 1): The planned issuance of interest - rate bonds is 5532 billion yuan, with a net financing of 4345 billion yuan. Among them, treasury bonds are planned to issue 1800 billion yuan with a net financing of 1600 billion yuan, local bonds 3372 billion yuan with a net financing of 2431 billion yuan, and policy - bank bonds 360 billion yuan with a net financing of 315 billion yuan [110]. - Issuance progress: As of July 25, the cumulative issuance progress of replacement bonds was 94.1%, that of new general bonds was 64.7%, and that of new special bonds was 59.0%. The cumulative net issuance progress of treasury bonds was 57.7%, and that of policy - bank bonds was 68.6% [8][114][116]. 3.7 Policy Weekly Observation - On July 21, the "Housing Rental Regulations" was announced to regulate the housing rental market [118]. - On July 23, a subsidy project for elderly care services for moderately and severely disabled elderly was launched [119]. - On July 23, the tax policy for goods in Hainan Free Trade Port at the time of full - island customs closure was released [120]. - On July 25, it was reported that the national general public budget expenditure in the first half of 2025 was 141271 billion yuan, a year - on - year increase of 3.4% [121]. - On July 22, Chengdu planned to cancel housing sales restrictions in batches and increase housing provident fund loan support [123]. - On July 24, Zhongshan introduced measures to promote the high - quality development of the real - estate market [124].

Investment Rating - The report maintains a positive outlook on the express delivery and shipping industries, particularly highlighting the potential for significant elasticity in the market following the acquisition of Daniao Express by Shentong [2][25]. Core Insights - The express delivery industry is expected to continue its high growth rate in 2025, with the market currently pricing in pessimistic expectations due to price wars. A reversal in these expectations could lead to substantial market elasticity [2]. - The acquisition of Daniao by Shentong is seen as a catalyst for further consolidation in the supply side, which may shift market focus from transaction expectations to actual transactions, benefiting quality companies like YTO Express and Shentong Express [2]. - The shipping sector is highlighted as a crucial part of commodity trade, with high mineral prices driving active shipments. The report recommends China Merchants Energy Shipping and notes the performance of various shipping companies in the Hong Kong and US markets [2][25]. - The report emphasizes the resilience of railway freight and highway truck traffic, with steady growth expected in these sectors [2]. Summary by Sections Express Delivery - The express delivery sector is projected to maintain a high growth rate, with institutional holdings in major players at low levels. The market is currently pricing in a pessimistic outlook due to ongoing price wars, but a potential reversal could lead to significant market elasticity [2]. - The acquisition of Daniao by Shentong is expected to draw attention to further supply-side consolidation, with quality companies like YTO Express and Shentong Express likely to gain market share [2]. Shipping - Shipping is identified as a vital link in commodity trade, with high mineral prices leading to increased shipments. The report recommends China Merchants Energy Shipping and highlights the performance of various shipping companies in the Hong Kong and US markets [2][25]. - New ship prices have stabilized, and the performance of Chinese shipyards is expected to outperform their Japanese and Korean counterparts [2][25]. Railway and Highway - Railway freight volume and highway truck traffic are showing resilience, with steady growth anticipated. Data from the Ministry of Transport indicates a slight increase in freight volume [2]. - The report suggests that the highway sector has two main investment themes for 2025: high dividend yield investments and potential value management catalysts for undervalued stocks [2]. Aviation - The aviation sector is expected to benefit from a recovery in supply chains and an increase in wide-body aircraft utilization, with a positive long-term outlook for airline profitability [2]. - The report recommends several airlines, including China Eastern Airlines and Cathay Pacific, as potential investment opportunities [2]. Overall Market Performance - The transportation index increased by 2.95%, outperforming the Shanghai Composite Index by 1.26 percentage points, with the aviation sector showing the highest growth at 4.84% [3][11]. - The report notes that the shipping and aviation sectors are experiencing fluctuations in freight rates, with specific indices reflecting these changes [3][11].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of 10.7 CNY [1][11]. Core Views - Haitong Development is positioned as a leading private dry bulk shipping company in China, capitalizing on market recovery opportunities. The company has demonstrated strong operational capabilities and cost management, maintaining rapid growth in shipping capacity over recent years, which is expected to release higher profit elasticity as the dry bulk market gradually recovers [8][11]. Summary by Sections Company Overview - Haitong Development, established in 2009, is a leading private dry bulk shipping company in China, ranking 7th among major shipping enterprises in terms of fleet size as of the end of 2024. The company has expanded its fleet from focusing on ultra-large bulk carriers to include various ship types, with a current fleet composition of 69% ultra-large, 10% Panamax, and 22% Capesize vessels [7][9][15]. Market Supply and Demand - The dry bulk market is transitioning from a recession to a recovery phase, with the BDI average for the first half of 2025 at 1290 points, down 41% from the historical average since 2000. Supply growth is expected to remain limited, with the order book for bulk carriers at a historical low of 10.4%. Demand factors include potential increases from the West Simandou project and interest rate cuts [7][53][55]. Company Highlights - The company has achieved a compound annual growth rate (CAGR) of 30% in total shipping capacity from 2019 to 2024. The operational flexibility and cost advantages, along with a well-experienced management team, have allowed the company to effectively manage its fleet and optimize routes, achieving daily TCE rates significantly above market benchmarks [10][11][22]. Financial Projections - The company is projected to achieve net profits of 3.3 billion CNY, 6.0 billion CNY, and 7.5 billion CNY for the years 2025 to 2027, with corresponding EPS of 0.35 CNY, 0.65 CNY, and 0.81 CNY. The report suggests a target market capitalization of approximately 102 billion CNY, indicating a potential growth of 26% from current levels [3][11][35].

Core Viewpoint - The Chinese export container shipping market is experiencing a continued adjustment, with most routes seeing a decline in freight rates, leading to a slight decrease in the overall index [1] Group 1: Market Performance - The Shanghai Export Container Freight Index is reported at 1592.59 points as of July 25, reflecting a decrease of 3.3% compared to the previous period [1]

Summary of Key Points Core Viewpoint - The announcement details the share reduction results of Shanghai Zhonggu Logistics Co., Ltd., highlighting the significant decrease in holdings by major shareholders, which may impact the company's stock performance and investor sentiment [1][2]. Group 1: Shareholder Holdings Before Reduction - Before the reduction, the controlling shareholder, Zhonggu Shipping Group Co., Ltd., and its concerted actors held a total of 1,365,480,392 shares, accounting for 65.02% of the company's total share capital [1]. - Zhonggu Shipping Group Co., Ltd. directly held 1,206,682,881 shares, representing 57.46% of the total shares [1]. - Ningbo Guyang Investment Management Partnership (Limited Partnership) held 147,245,468 shares, or 7.01% [1]. - Ningbo Guze Investment Management Partnership (Limited Partnership) held 11,552,043 shares, accounting for 0.55% [1]. Group 2: Implementation Results of the Reduction Plan - Ningbo Guze Investment Management Partnership reduced its holdings by 11,552,043 shares from June 30, 2025, to July 25, 2025, at a price range of 9.54 to 10.67 CNY per share, totaling 112,942,988.44 CNY [2]. - Ningbo Guyang Investment Management Partnership reduced its holdings by 51,449,762 shares during the same period, with a price range of 8.91 to 9.79 CNY per share, totaling 465,894,149.82 CNY [2]. - The total reduction by Ningbo Guyang Investment Management Partnership represented 2.45% of the company's total share capital [2]. - The actual reduction results were inconsistent with the previously disclosed reduction plan [2].

Group 1 - The A-share private placement market has shown a significant recovery since 2025, with 90 listed companies raising approximately 720 billion yuan, a year-on-year increase of 588.16% [1] - Major state-owned banks, including Bank of China and Postal Savings Bank, have been key drivers of this fundraising surge, aligning with national policies to support capital replenishment [1][4] - The growth in private placements is driven by three main factors: regulatory encouragement for direct financing, improved refinancing efficiency due to registration system reforms, and a declining market interest rate environment [1] Group 2 - Companies like Guangdian Measurement and Haitong Development have announced private placement plans to raise funds for various projects, including new technology platforms and fleet expansion [2][3] - Guangdian Measurement aims to raise up to 1.3 billion yuan for projects in emerging fields and to enhance its market position through scale expansion [2] - Haitong Development plans to raise up to 210 million yuan to purchase dry bulk carriers, enhancing its operational capacity and global service capabilities [3] Group 3 - The total amount raised through equity financing in the capital market has reached approximately 820 billion yuan, with private placements being a significant component [4] - State-owned banks have raised a total of 520 billion yuan through private placements, significantly boosting their capital adequacy ratios and risk resilience [4][5] - The Ministry of Finance has been a major participant in the recent bank equity placements, supporting state-owned banks' capital replenishment efforts [5] Group 4 - There is a notable differentiation in private placement activities across industries, particularly between the financial sector and the real economy [6] - Financial sector placements focus on capital strength and risk management, while real economy placements are more oriented towards business expansion and technological upgrades [6] - The challenges faced by the financial sector include stricter capital regulations and insufficient internal capital accumulation, while the real economy requires funds for industrial upgrades and production scale expansion [6]

1. Report Industry Investment Rating - No relevant content provided 2. Core Viewpoints of the Report - The European line shipping market has certain support, with a good loading rate but a marginal weakening of cargo volume. The weekly average capacity in August is as high as 320,000 TEU, a month - on - month increase of 8%. The cargo volumes in weeks 32, 33, 34, and 35 are 343,000, 305,000, 320,000, and 305,000 TEU respectively [2]. 3. Summary by Relevant Catalogs 3.1 Futures - **Futures Contracts Price and Changes**: The closing prices, price changes (%), basis, trading volumes, open interests, and open interest changes of different EC futures contracts (EC2508, EC2510, EC2512, EC2602, EC2604, EC2606) are presented. For example, EC2508 closed at 2244.9 with a 0.23% increase, and its open interest decreased by 1355 [2]. - **Futures Month - to - Month Spreads**: The spreads between different contract months (EC2508 - 2510, EC2510 - 2512, EC2512 - 2602) are given, along with their changes compared to the previous days and week - on - week changes. For instance, the spread of EC2508 - 2510 was 661.0, a decrease of 41.7 from the previous day and an increase of 8.1 week - on - week [2]. 3.2 Spot - **Spot Price Indexes**: The values, update frequencies, release dates, and changes of several spot price indexes (SCEIS, SCFI, CCFI, NCFI, TCI) are provided. For example, SCEIS on July 21, 2025, was 2400.5 points, a 0.89% decrease from the previous period but a 7.26% increase from two periods ago [2]. - **European Line Supply - Demand and Quotes**: In August, the weekly average capacity of the European line is 320,000 TEU, a month - on - month increase of 8%. Cargo volumes in weeks 32 - 35 are 343,000, 305,000, 320,000, and 305,000 TEU respectively. In July, the quotes remained stable at around 2400 points. In August, some shipping companies announced price increases, while MSK had price adjustments. Currently, the actual quotes of PA Alliance decreased by 200 - 300 to 3100 US dollars, and some of MSK's routes had price increases [2]. 3.3 News - **International News**: On July 24, Israeli Prime Minister Netanyahu stated that Israel would not yield to Hamas in the cease - fire negotiations. On July 25, French President Macron announced that France would recognize the State of Palestine in September [2]. 3.4 Shipping Company Quotes - **Online Quotes Structure**: The online quotes structures (40GP and converted to the underlying) of shipping companies (EMC, HMM, HPL, MSK, MSC, ONE, OOCL) from July 4 to July 24 are presented [3][4]. 3.5 Seasonal Trends - **European Line Spot Freight Rate Indexes**: The seasonal trends of SCFIS, SCFI, TCI, NCFI, XSI - C (European line) and other shipping routes' TCI (including Mediterranean East, Mediterranean West, East Africa, Persian Gulf, South Africa, West Africa, etc.) are shown [7].