Investment Rating - The report does not explicitly provide an overall investment rating for the transportation sector Core Views - The express delivery sector is expected to benefit from legislative measures aimed at reducing "involution" competition, with a focus on stabilizing prices and improving quality, particularly for leading companies like Zhongtong Express and Jitu Express in overseas markets [2] - The chemical logistics sector is anticipated to improve due to rising chemical prices, with a focus on companies such as Milkway, Hongchuan Wisdom, Xingtong, Shenghang, and Yongtaiyun [3] - The aviation sector is projected to recover with a 3.34% year-on-year increase in international passenger flights for the summer season, with recommendations for China National Aviation and Southern Airlines [4] - The shipping sector is closely monitored for developments in the US-Iran conflict, which may impact oil and container shipping rates [5] - The road and rail sector is seen as defensive amid geopolitical disturbances, with a focus on coal transportation due to rising oil prices [6] Summary by Sections Transportation Market Review - The transportation index fell by 1.0% from March 7 to March 13, 2026, while the Shanghai and Shenzhen 300 index rose by 0.2%, underperforming the market by 1.2% [1][13] Industry Fundamentals Tracking Shipping and Ports - The export container shipping market is facing challenges due to geopolitical tensions, with the China Export Container Freight Index (CCFI) at 1072.16 points, a 1.7% increase week-on-week but an 11.5% decrease year-on-year [23] - The oil shipping index (BDTI) is at 2813.8 points, down 1.9% week-on-week but up 209.5% year-on-year [39] Aviation and Airports - The aviation sector is showing signs of recovery, with a 10.55% year-on-year increase in daily flights and a 3.34% increase in planned international flights for the summer season [4][57] - Brent crude oil prices have risen to $103.14 per barrel, impacting operational costs for airlines [70] Rail and Road - The rail sector is experiencing upward momentum, with coal transportation gaining importance due to rising oil prices [6][82] - The road sector shows a 40.64% week-on-week increase in truck traffic on highways, although year-on-year figures are down by 9.28% [85]

Investment Rating - The report does not explicitly state an overall investment rating for the industry Core Views - The express delivery sector is positively influenced by regulatory measures against "involution" competition, with a focus on stabilizing prices and improving service quality, which is expected to enhance profitability for leading companies like Zhongtong Express and Jitu Express [2] - The logistics sector is recommended to focus on smart logistics, with companies like Haichen Co. being highlighted due to the anticipated recovery in chemical logistics driven by rising chemical product prices [3] - The aviation sector shows signs of recovery with increased flight volumes and potential for improved profitability as oil prices stabilize [4] - The shipping sector is experiencing high freight rates due to geopolitical tensions affecting oil transport routes, particularly in the Strait of Hormuz [5] - The road and rail sectors are noted for their steady performance, with opportunities for investment in companies with attractive dividend yields [6] Summary by Sections Transportation Market Review - The transportation index fell by 0.7% last week, while the Shanghai and Shenzhen 300 index decreased by 1.1%, indicating a slight outperformance of the transportation sector [1][13] Industry Fundamentals Tracking Shipping Ports - The export container shipping market is under pressure, with the China Container Freight Index (CCFI) at 1044.57 points, down 4.0% week-on-week and 20.8% year-on-year [21] - High oil transport rates are maintained due to geopolitical tensions, with the BDTI index rising to 2868.4 points, up 51.4% week-on-week and 225.4% year-on-year [40] Aviation Airports - The average daily flights in China increased by 17.86% year-on-year, with domestic flights up by 19.64% [4] - Brent crude oil prices rose to $92.69 per barrel, impacting operational costs for airlines [67] Rail and Road - The national highway freight traffic saw a significant increase of 229.68% week-on-week, although it remains down 35.52% year-on-year [84] - The railway sector reported a passenger volume increase of 8.52% year-on-year, indicating a positive trend in rail transport [82] Express Logistics - The express delivery sector recorded a collection volume of approximately 4.231 billion packages, up 12.6% year-on-year, while delivery volume decreased by 6.3% year-on-year [2]

Investment Rating - The report does not explicitly provide an overall investment rating for the industry Core Views - The express delivery sector is positively influenced by regulatory measures against "involution" competition, with a focus on stabilizing prices and improving service quality, which is expected to enhance profitability for leading companies like Zhongtong Express and Jitu Express [2] - The logistics sector is recommended to focus on smart logistics, with companies like Haichen Co., Ltd. being highlighted due to the anticipated recovery in chemical logistics driven by rising chemical product prices [3] - The aviation sector shows signs of recovery with increased flight volumes and potential for improved profitability as supply constraints ease, recommending investments in major airlines such as Air China and China Southern Airlines [4] - The shipping sector is experiencing high freight rates due to geopolitical tensions affecting oil transport routes, with a focus on maintaining high rates despite fluctuations in container shipping indices [5] - The road and rail sectors are showing stable growth, with opportunities for investment in highway operators due to attractive dividend yields compared to government bond rates [6] Summary by Sections Transportation Market Review - The transportation index fell by 0.7% last week, while the Shanghai and Shenzhen 300 index decreased by 1.1%, indicating a slight outperformance of the transportation sector [1][13] Industry Fundamentals Tracking Shipping Ports - The shipping market is facing challenges due to geopolitical tensions, with the CCFI index at 1044.57 points, down 4.0% week-on-week and down 20.8% year-on-year [21] - Oil transport indices are high, with the BDTI index at 2868.4 points, up 51.4% week-on-week and up 225.4% year-on-year, indicating strong demand and pricing power in oil shipping [40] Aviation Airports - The average daily flights increased by 17.86% year-on-year, with domestic flights up 19.64%, suggesting a recovery in air travel demand [4] - Brent crude oil prices rose to $92.69 per barrel, impacting operational costs for airlines, but potential easing of geopolitical tensions may improve margins [67] Road and Rail - The highway sector showed a significant increase in truck traffic, with 32.72 million vehicles recorded, up 229.68% week-on-week, indicating robust demand [84] - Rail freight volumes are stabilizing, with a slight increase in passenger turnover, suggesting a positive trend in rail transport [82] Express Logistics - The express delivery sector saw a collection volume of approximately 4.231 billion packages, up 12.6% year-on-year, indicating strong growth potential [2]

Investment Rating - The report does not explicitly state an overall investment rating for the industry Core Views - The logistics sector is expected to benefit from rising chemical prices, with a focus on chemical logistics companies such as Milkyway, Hongchuan Wisdom, Xingtong, Shenghang, and Yongtaiyun [2] - The express delivery sector is seeing price stabilization due to regulatory clarity and a reduction in internal competition, with a positive outlook for leading companies like Zhongtong Express and Jitu [2] - The aviation sector is experiencing a recovery in flight volumes, with a recommendation for airlines such as Air China and China Southern Airlines due to expected profit elasticity from ticket price increases [3] - The shipping sector is positively impacted by geopolitical tensions, particularly the blockade of the Strait of Hormuz, which is expected to drive up oil shipping rates [4] Summary by Sections Transportation Market Review - The transportation index rose by 3.3% from February 21 to February 27, 2026, outperforming the Shanghai and Shenzhen 300 index by 2.2% [1][11] - The shipping sector had the highest increase at +11.9%, while the airport sector saw a decline of -1.8% [1][11] Industry Fundamentals Tracking Shipping and Ports - The export container shipping price index (CCFI) was 1044.57 points, down 4.0% week-on-week and down 20.8% year-on-year [21] - The oil shipping index (BDTI) increased by 2.2% week-on-week and 91.5% year-on-year, indicating strong demand due to geopolitical factors [4][37] Aviation and Airports - The average daily flights in China increased by 17.58% year-on-year, with domestic flights up by 17.60% [3] - The passenger throughput in January 2026 was 62.99 million, a decrease of 2.9% year-on-year [55] Road and Rail - The national highway freight traffic was 9.924 million vehicles, down 70.58% week-on-week and down 79.56% year-on-year [5][84] - The railway passenger turnover in December 2025 was 3.23 billion people, up 8.52% year-on-year [82] Express Delivery and Logistics - The total express delivery volume was approximately 806 million pieces, down 77.8% year-on-year [2] - The chemical products price index (CCPI) was 4041 points, down 8.1% year-on-year, indicating a potential recovery in chemical logistics [2]

Investment Rating - The report does not explicitly state an overall investment rating for the transportation sector, but highlights specific companies and segments with positive outlooks, such as logistics and aviation [2][3][4]. Core Insights - The transportation index increased by 3.3% in the last week, outperforming the Shanghai Composite Index by 2.2%, with the shipping sector showing the highest growth at 11.9% [1][11]. - In the express delivery segment, some companies are benefiting from price increases due to reduced competition, with a focus on leading firms like Zhongtong Express and Jitu Express [2]. - The logistics sector is expected to improve as chemical product prices rise, with a focus on companies like Milkyway and Hongchuan Wisdom [2]. - The aviation sector is experiencing a slight decline in flight numbers but remains optimistic about ticket prices and profitability due to high passenger load factors [3][55]. - The shipping sector is positively impacted by geopolitical tensions, particularly in oil transportation, with expectations of price increases [4]. Summary by Sections Shipping and Ports - The shipping sector is seeing a stabilization in container shipping rates, while oil transportation rates are expected to rise due to geopolitical factors [4][21]. - The China Export Container Freight Index (CCFI) is at 1044.57 points, down 4.0% week-on-week and down 20.8% year-on-year [21]. - The oil transportation index (BDTI) increased by 2.2% week-on-week and 91.5% year-on-year, indicating strong demand in this segment [4][37]. Aviation and Airports - The average daily flights in China increased by 17.58% year-on-year, with domestic flights showing a similar growth rate [3]. - The Brent crude oil price is at $72.48 per barrel, with domestic aviation kerosene prices decreasing by 4.3% week-on-week [66]. - Airlines are expected to benefit from improved load factors and ticket pricing, with specific recommendations for China National Aviation and Southern Airlines [3][55]. Logistics - The chemical logistics sector is anticipated to improve as chemical prices rise, with a focus on companies like Milkyway and Hongchuan Wisdom [2]. - The overall logistics environment is supported by a stable demand for chemical products, with operational rates for key chemicals showing positive trends [2]. Road and Rail - The road transport sector is showing signs of recovery, with a notable increase in truck traffic, although there was a significant drop in traffic volume recently [84]. - The railway sector is also experiencing a positive trend, with passenger turnover increasing by 8.52% year-on-year [82].

Industry Overview - The China Chemical Products Price Index (CCPI) is reported at 4120 points this week, showing a year-on-year decrease of 5.0% and a month-on-month increase of 1.1% [1] - The CCPI for the previous week was 4066 points, reflecting a year-on-year decline of 6.6% and a month-on-month decrease of 1.0% [1] - The domestic maritime shipping price for liquid chemicals was 168 RMB/ton, down 8.51% year-on-year and 0.62% month-on-month [1] Express Delivery - In December, the express delivery business volume increased by 2.3% year-on-year, with some companies benefiting from price increases due to reduced competition [2] - The total collection volume for postal express from January 26 to February 1 was approximately 4.541 billion pieces, up 60.8% year-on-year and 5.5% month-on-month [2] - The total delivery volume during the same period was about 4.477 billion pieces, reflecting a year-on-year increase of 18.7% and a month-on-month increase of 5.8% [2] - The State Post Bureau forecasts that by 2025, express delivery revenue will reach 1.5 trillion RMB, growing by 6.5% year-on-year [2] Logistics - DSV's integration of DB Schenker is progressing ahead of expectations, with completion anticipated by the end of 2026 [3] - The company is focusing on smart logistics, benefiting from improved demand [3] Aviation and Airports - The average daily flights nationwide decreased by 1.08% year-on-year, with domestic flights down 1.28% [4] - Brent crude oil futures settled at 67.55 USD/barrel, down 4.47% month-on-month and 11.07% year-on-year [4] - The domestic aviation kerosene ex-factory price (including tax) is 5334 RMB/ton, down 4.3% month-on-month and 12.7% year-on-year [4] - The airline sector is expected to see profit elasticity due to supply constraints from aircraft manufacturers and upstream component suppliers [4] Shipping - The container shipping price index (CCFI) is at 1122.15 points, down 4.5% month-on-month and 20.7% year-on-year [5] - The Shanghai Export Container Freight Index (SCFI) is at 1266.56 points, down 3.8% month-on-month and 33.2% year-on-year [5] - The crude oil transportation index (BDTI) increased by 2.1% month-on-month and 88.5% year-on-year, indicating a growing demand for oil transportation [5] - A recent agreement between the U.S. and India to halt Russian oil purchases is expected to boost oil transportation demand [5] Road and Rail Ports - Anhui Expressway completed the acquisition of Shandong Expressway, acquiring 7% of its total share capital at a price of 8.92 RMB/share, totaling 3.019 billion RMB [5] - The total number of freight vehicles on national highways reached 56.83 million, up 4.75% month-on-month and 506.12% year-on-year [5]

Investment Rating - The report indicates a positive outlook for the transportation sector, with specific recommendations for companies such as SF Holding and China Southern Airlines [2][4]. Core Insights - The express delivery sector experienced a year-on-year growth of 2.3% in December, with major companies benefiting from price increases due to reduced competition. The total express business revenue for 2025 reached 1.5 trillion yuan, a 6.5% increase year-on-year [2]. - The logistics sector is seeing improvements with DSV's integration of DB Schenker progressing ahead of schedule, and a focus on smart logistics is recommended for Hai Chen Co. [3]. - The aviation sector is witnessing a slight decrease in flight volumes, but ticket prices are expected to rise due to supply constraints from manufacturers. Recommendations include China National Aviation and China Southern Airlines [4]. - The shipping sector shows a mixed performance, with container shipping rates declining while oil transport indices are on the rise, indicating a potential increase in oil transport demand [5]. - The road and rail sectors are showing stable growth, with significant increases in truck traffic on highways and a notable rise in the dividend yield of major public road operators [6][79]. Summary by Sections 1. Transportation Market Review - The transportation index rose by 1.8% during the week of January 31 to February 6, 2026, outperforming the Shanghai Composite Index by 3.2% [1][13]. 2. Industry Fundamentals Tracking 2.1 Shipping Ports - The export container shipping index (CCFI) was reported at 1122.15 points, down 4.5% week-on-week and down 20.7% year-on-year. The Shanghai export container shipping index (SCFI) was at 1266.56 points, down 3.8% week-on-week and down 33.2% year-on-year [21]. 2.2 Aviation Airports - In December 2025, civil aviation passenger volume reached 60.6 million, a 6% increase year-on-year, with domestic routes showing a 6% increase and international routes a 9% increase [56]. 2.3 Rail and Road - In December 2025, national railway passenger volume was 323 million, up 8.52% year-on-year, while road freight volume was 3.797 billion tons, up 0.62% year-on-year [77][79].

Group 1: Express Delivery Industry - The express delivery business volume in China is expected to grow by 13.7% year-on-year by 2025, with some companies benefiting from price increases amid reduced competition [1] - During the week of January 5-11, the total collection volume of postal express reached approximately 4.107 billion pieces, a week-on-week increase of 7.1% and a year-on-year increase of 4.1% [1] - The total delivery volume for the same week was about 4.16 billion pieces, with a week-on-week increase of 6.0% and a year-on-year increase of 9.0% [1] - By 2025, the express delivery revenue is projected to reach 1.5 trillion yuan, with a year-on-year growth of 6.5% [1] - The report recommends investing in SF Holding due to valuation, operational resilience, and improved shareholder returns, while also being optimistic about Zhongtong Express due to market share growth [1] Group 2: Logistics Industry - The chemical product price index (CCPI) in China is currently at 4024 points, showing a year-on-year decrease of 7.7% but a month-on-month increase of 1.1% [2] - The domestic sea freight price for liquid chemicals is 169 yuan/ton, reflecting a year-on-year decrease of 8.98% [2] - Shanghai has introduced favorable policies for intelligent driving, aiming to expand the application of L3-level autonomous vehicles and enhance smart logistics [2] - The report recommends Hai Chen Co. due to improved demand in its main business [2] Group 3: Aviation Industry - The average daily number of flights in China has decreased by 5.66% year-on-year, with domestic flights down by 6.18% [3] - Brent crude oil futures settled at $64.13 per barrel, a month-on-month increase of 1.25% but a year-on-year decrease of 19.76% [3] - The report suggests that supply constraints from aircraft manufacturers and upstream suppliers will slow supply growth, leading to improved ticket prices and airline profit elasticity, recommending China National Aviation and Southern Airlines [3] Group 4: Shipping Industry - The China Container Freight Index (CCFI) is at 1209.85 points, reflecting a month-on-month increase of 1.3% but a year-on-year decrease of 22.5% [4] - The crude oil transportation index (BDTI) increased by 18.5% month-on-month and 60.2% year-on-year [4] - The dry bulk freight index (BDI) is at 1586.4 points, showing a month-on-month decrease of 10.5% but a year-on-year increase of 51.2% [4] - The report indicates that the total number of trucks on highways decreased year-on-year by 2.02% [4]

Investment Rating - The report recommends a positive outlook for the logistics and transportation sector, particularly highlighting companies like SF Holding and China National Aviation [2][4]. Core Views - The express delivery sector saw a year-on-year growth of 2.3% in December, with major companies benefiting from price increases amid reduced competition [2]. - The logistics sector is advised to focus on smart logistics, with Hai Chen Co. recommended due to improved demand [3]. - The aviation sector is experiencing a slight decline in flight volumes, but major airlines like China Southern Airlines and Air China are expected to turn profitable in 2025 [4]. - The shipping sector shows a significant increase in dry bulk shipping index (BDI) by 14.2% week-on-week, indicating a positive trend [5]. Summary by Sections Transportation Market Review - The transportation index fell by 1.3% during the week of January 24-30, 2026, while the Shanghai and Shenzhen 300 index rose by 0.1%, indicating underperformance in the transportation sector [12]. Industry Fundamentals Tracking Shipping Ports - The shipping market is adjusting, with the SCFI index down by 9.7% week-on-week, reflecting weak demand in the long-distance shipping market [20]. - The export container shipping index (CCFI) is at 1175.59 points, down 2.7% week-on-week and down 21.9% year-on-year [21]. Aviation Airports - In December 2025, civil aviation passenger volume reached 60.6 million, a 6% increase year-on-year, with domestic routes showing a similar growth [53]. - Major airlines are expected to see improved profitability, with Air China and China Southern Airlines projected to return to profit in 2025 [4]. Rail and Road - National railway passenger volume in December 2025 was 323 million, up 8.52% year-on-year, while freight volume decreased by 2.60% [72]. - The road freight volume for the same period was 37.97 billion tons, showing a slight increase of 0.62% year-on-year [77].

Investment Rating - The report recommends a positive outlook for the logistics and transportation sector, particularly highlighting companies like SF Holding and China National Aviation [2][4]. Core Insights - The express delivery sector saw a year-on-year growth of 2.3% in December, with major companies benefiting from price increases amid reduced competition [2]. - The logistics sector is experiencing a recovery in demand, with a recommendation for Haicheng Co. due to its focus on smart logistics [3]. - The aviation sector is expected to see improved profitability as supply constraints ease, with recommendations for China National Aviation and Southern Airlines [4]. Summary by Sections Transportation Market Review - The transportation index fell by 1.3% during the week of January 24-30, 2026, while the Shanghai and Shenzhen 300 index rose by 0.1%, indicating underperformance against the broader market [12]. Industry Fundamentals Tracking Shipping Ports - The shipping market is adjusting, with the China Export Container Freight Index (CCFI) at 1175.59 points, down 2.7% week-on-week and down 21.9% year-on-year [21]. - The dry bulk shipping index (BDI) increased by 14.2% week-on-week, indicating a positive trend in dry bulk demand [34]. Aviation Airports - In December 2025, civil aviation passenger volume reached 60.6 million, a 6% year-on-year increase, with domestic routes showing strong performance [53]. - Major airlines are expected to improve profitability, with China National Airlines and Southern Airlines highlighted for their potential [4]. Rail and Road - National railway passenger volume increased by 8.52% year-on-year in December 2025, while road freight volume showed a slight increase of 0.62% [72]. - The report notes a decline in truck traffic on highways, with a 3.32% decrease week-on-week [34]. Recommendations - The report recommends investing in SF Holding for its valuation and resilience, and in Haicheng Co. for its smart logistics initiatives [2][3]. - The aviation sector is also recommended for investment, particularly in China National Aviation and Southern Airlines due to expected profit recovery [4].