Investment Rating - The report maintains a "Recommendation" rating for the transportation industry [3] Core Viewpoints - The transportation industry is expected to experience steady growth in H1 2025, with an emphasis on the investment value after market corrections [2] - The report highlights the underperformance of dividend assets in July 2025, which lagged behind the CSI 300 index and the transportation index [6][11] - The report suggests a focus on long-term investment value in transportation dividend assets, driven by industry logic and valuation elasticity [6] Industry Basic Data - Total number of stocks: 122 - Total market capitalization: 33,240.61 billion - Circulating market capitalization: 28,359.48 billion [3] Monthly Market Performance - From July 1 to July 18, 2025, the transportation industry rose by 0.52%, underperforming the CSI 300 index by 2.59 percentage points [10] - Year-to-date, the transportation industry has decreased by 1.31%, lagging behind the CSI 300 index by 4.46 percentage points [10] - Specific performance of dividend assets from July 1 to July 18: - Expressways: -0.02% - Railway transportation: -2.23% - Ports: 0.36% [11] Market Environment - The report notes a low interest rate environment, with the 10-year government bond yield at 1.67% as of July 18, 2025 [22] - Daily average transaction volume for highways increased by 18.9% year-on-year, while ports saw a significant increase of 65.5% [25] Industry Data Highways - Passenger volume in May 2025: 985 million, down 2.6% year-on-year - Freight volume in May 2025: 3.681 billion tons, up 1.7% year-on-year [31] Railways - Passenger volume in June 2025: 373 million, up 3.7% year-on-year - Freight volume in June 2025: 43.8 million tons, up 2.2% year-on-year [50] Ports - Port cargo throughput in the last four weeks (June 16 - July 13, 2025): 1.058 billion tons, up 5.1% year-on-year [59] Investment Recommendations - The report recommends focusing on highway assets with high dividend yields, such as Sichuan Chengyu Expressway, and emphasizes the potential for growth in the highway sector [6] - For ports, it suggests investing in companies like China Merchants Port and Qingdao Port, which are expected to see stable growth [6] - In the railway sector, it highlights the potential of key assets like Beijing-Shanghai High-Speed Railway and Daqin Railway [6]

Core Viewpoint - The announcement provides a voluntary disclosure of business volume data for May 2025 by China Merchants Port Group Co., Ltd, highlighting both year-on-year growth and specific regional performance metrics [1]. Group 1: Container Volume - Total container volume for May 2025 reached 1,759.2 million TEU, representing a 4.4% increase year-on-year [2]. - Cumulative container volume for the year stands at 8,367.3 million TEU, reflecting a 6.4% year-on-year growth [2]. - Inland terminals contributed 1,387.7 million TEU in May, with a year-on-year increase of 5.6% [2]. - The Pearl River Delta region saw a slight decline of 1.1% year-on-year, totaling 156.8 million TEU [2]. - The Yangtze River Delta region experienced a robust growth of 9.1%, reaching 918.0 million TEU [2]. - The Bohai Rim region reported a minor decrease of 0.4%, totaling 286.0 million TEU [2]. - Southeast region's container volume increased by 8.2%, totaling 17.4 million TEU [2]. - Southwest region faced a significant decline of 17.0%, with 9.5 million TEU [2]. - Hong Kong, Macau, and Taiwan terminals reported a 21.0% decrease, totaling 42.9 million TEU [2]. - Overseas terminals contributed 328.6 million TEU, marking a 3.9% increase [2]. Group 2: Bulk Cargo Volume - Total bulk cargo volume for May 2025 reached 11,375.8 million tons, showing a year-on-year increase of 7.4% [2]. - Cumulative bulk cargo volume for the year is 52,626.0 million tons, with a slight decline of 0.4% year-on-year [2]. - Inland terminals accounted for 11,301.1 million tons in May, reflecting a 7.6% increase year-on-year [2]. - The Pearl River Delta region's bulk cargo volume decreased by 10.0%, totaling 337.7 million tons [2]. - The Yangtze River Delta region saw a 10.0% increase, reaching 6,953.0 million tons [2]. - The Bohai Rim region reported a 5.4% increase, totaling 3,059.2 million tons [2]. - Southeast region's bulk cargo volume surged by 21.2%, totaling 196.9 million tons [2]. - Southwest region experienced a minor increase of 1.6%, with 754.3 million tons [2]. - Overseas terminals reported a decline of 13.5%, totaling 74.7 million tons [2].

Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Views - In the first quarter of 2025, the company achieved operating revenue of 4.81 billion yuan, a year-on-year increase of 8.5%, and a net profit attributable to shareholders of 1.4 billion yuan, up 6.5% year-on-year [5][11] - The container throughput benefited from increased exports to the U.S., maintaining high growth, while bulk cargo, especially oil throughput, was under pressure due to low operating rates of local refineries [11] - The company's gross profit growth was mainly driven by high growth in container throughput, while investment income declined, possibly due to a decrease in liquid bulk cargo business volume [11] Summary by Sections Financial Performance - In Q1 2025, the company reported total cargo throughput of 177 million tons, a year-on-year increase of 2.9%, with container throughput of 8.22 million TEU, up 7.2% year-on-year [11] - The revenue for Q1 2025 was 4.81 billion yuan, with a cost of 2.95 billion yuan, resulting in a gross margin of 38.6%, an increase of 0.4 percentage points year-on-year [11] - The net profit margin was 32.0%, down 1.4 percentage points year-on-year [11] Business Outlook - The local refinery operating rates showed signs of stabilization, and the production of iron and steel is on the rise, which may lead to a recovery in oil and dry bulk cargo throughput [11] - The company expects net profits attributable to shareholders for 2025-2027 to be 5.48 billion, 5.71 billion, and 6.14 billion yuan, corresponding to P/E ratios of 10.2, 9.8, and 9.1 times, respectively [11]