Group 1 - The core viewpoint indicates that the aviation sector is expected to turn profitable by Q2 2025, driven by revenue growth and improved net profits due to cost rigidity and increased passenger volume [1] - In H1 2025, the aviation sector's revenue increased by 7% year-on-year, with a significant 71% year-on-year growth in net profit attributable to the parent company, aided by lower oil prices and improved turnover [1] - The airport sector also saw revenue growth, with H1 2025 revenue up by 6% year-on-year and net profit attributable to the parent company rising by 26% [1] Group 2 - In Q2 2025, the aviation sector's revenue grew by 10% year-on-year, and net profit attributable to the parent company turned profitable, supported by a rise in domestic ticket sales and sustained low oil prices [1] - The airport sector's Q2 2025 revenue increased by 8% year-on-year, with net profit attributable to the parent company growing by 34% [1] - The future supply growth in the aviation industry is expected to slow down, leading to an optimization of supply and demand, which may drive ticket prices up and release profits [1]

Core Viewpoint - The railway freight volume and highway truck traffic in China show resilience and maintain steady growth, indicating a positive outlook for the transportation sector [1]. Group 1: Railway Freight and Highway Traffic - From July 7 to July 13, the national railway transported a total of 79.602 million tons of goods, with a week-on-week increase of 1.47% [1]. - The total number of highway truck passes reached 53.076 million, reflecting a week-on-week growth of 0.19% [1]. - The China National Railway Group projects that by the first half of 2025, the national railway will complete a freight volume of 2.558 billion tons, representing a year-on-year increase of 1.8%, with coal transportation accounting for 1.337 billion tons [1]. Group 2: Investment Opportunities - The highway sector is expected to have two main investment themes throughout 2025: traditional high-dividend investments and potential value management catalysts from undervalued stocks [1]. - The transportation ETF (561320) tracks the mainland transportation index (000945), which includes listed companies involved in railway, highway, waterway, and aviation transportation, reflecting the overall performance of the transportation sector in mainland China [1]. - Investors without stock accounts can consider the Guotai Zhongzheng Mainland Transportation Theme ETF Initiated Link C (018906) and the Guotai Zhongzheng Mainland Transportation Theme ETF Initiated Link A (018905) [1].